Carlsberg IPO: The Indian business of Denmark’s famous liquor company Carlsberg has got a ticket to enter the stock market. Market regulator SEBI has given the green light to Carlsberg India’s IPO. If you are familiar with Tuborg or Carlsberg beer brands, then this news is very interesting for you, as the company that makes these brands is now going to knock on Dalal Street.

Preparation to raise 6600 crores

According to a Reuters report, the company raised around Rs. 6600 crore ($700 million) plans to raise. The special thing is that only Offer for Sale (OFS) can be done in this IPO. This simply means that the existing promoters or investors of the company will sell their shares, no new shares will be issued. Market experts believe that the shares of the company may be listed in the market by the end of this year.

Secretly filed documents

Carlsberg India had confidentially submitted the IPO documents to SEBI on July 1. The advantage of confidential pre-filing is that companies can hide their important information until the final decision on listing is made. This allows companies to keep important data about their business, financial condition and market risks secret from their competitors.

If necessary, the company can also withdraw its draft without disclosing any important information. Whereas normally submitted drafts immediately become public documents. The company is taking help from the Indian units of Kotak Mahindra Capital, JPMorgan Chase and Citigroup for this major IPO. However, the size, composition or timing of the IPO may change in the future.

Large position of the company in India

Carlsberg India is the second largest liquor manufacturing company in India. It has about 22 percent share in the Indian market. The company started its operations in India in the year 2007, while the global Carlsberg Group dates back to 1847.

Today the company operates 14 breweries (where liquor is made) across the country. 8 of them are directly owned by the company, while 6 are contract manufacturing units. The company’s portfolio includes major brands such as Carlsberg, Tuborg, Holston, Somersby along with Grimbergen. Its biggest competition in India is United Breweries Limited. Apart from this, Absolut Vodka manufacturing company Pernod Ricard is also planning to bring its IPO soon.

Three other companies have received approval

Sebi has cleared the IPO of not only Carlsberg India but also three other companies. These include TMC Transformers (India) Limited, Ujin Pharma Limited along with Matangi Rubber Limited. TMC Transformers Rs. 550 crore IPO, in which only new shares will be issued. While 1.18 crore new shares will be issued in Ujin Pharma’s IPO, promoters will sell 72.82 lakh shares under OFS.