Hindustan Coca-Cola Holdings, the parent of Coca-Cola’s Indian bottling arm, has filed draft papers for an IPO.
The company submitted its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on Friday (6 November), without disclosing a pricing range.
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The offering comprises an offer for sale by controlling shareholder Hindustan Coca-Cola Overseas Holdings, which plans to divest up to 997.5 million equity shares bearing a face value of Rs10 each.
The transaction will reduce the majority owner’s stake from 60% to approximately 45%.
Jubilant Beverages, the Indian family-owned conglomerate that secured a 40% interest in July last year, is not participating in the sale.
Hindustan Coca-Cola Holdings is the holding company for Hindustan Coca-Cola Beverages (HCCB), which claims to be the largest bottler of the soft drinks brand in India. Founded in 1997, the bottler operates across ten states and four Union Territories in western and southern India.
The company has 14 owned production sites and also uses eight co-packing facilities to produce and bottle drinks including Coca-Cola, Thums Up, Sprite, and Fanta.
For the fiscal year ended March 2026, Hindustan Coca-Cola Holdings logged a 9.4% decline in operational revenue to Rs115.49bn ($1.23bn). EBITDA, excluding exceptional items and other income, dropped 17.5% to Rs13.53bn, compressing the operating margin to 11.72% from 12.86% in fiscal 2025.
According to the company, the decline was driven by the sale of assets in states including Rajasthan, Bihar and Jharkhand to other Coca-Cola bottlers under a “multi-year refranchising process”.
The move “reduced our revenue base, together with higher employee benefits expense and depreciation and amortisation expenses as a percentage of revenue from operations”, it outlined in the filing.
Momentum recovered during in the quarter to the end of June as summer demand lifted volume sales by 15.1% to 249.2 million unit cases and boosted revenue by 16.8% to Rs43.10bn. Quarterly EBITDA soared 38.9% to Rs7.42bn, improving margins to 17.2% from 14.48%.
