Jubilant Bhartia Group to raise US$660M to fund stake purchase in Hindustan Coca-Cola
Two Jubilant subsidiaries to issue bonds as part of financing package for Rs 12,650 crore Coca-Cola bottling unit acquisition.
INDIA – The Jubilant Bhartia Group is preparing to raise over Rs 5,650 crore (US$660M) through non-convertible debentures (NCDs) issued by two group companies, aiming to fund a portion of its Rs 12,650 crore (US$1.5B) acquisition of a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd (HCCH).
According to a report by The Economic Times, the capital raise will be executed via Jubilant Beverages Ltd and Jubilant Bevco Ltd, both subsidiaries of the group.
The move follows the Competition Commission of India’s approval on May 1, 2025, for the acquisition deal, which was originally announced in December 2024.
NCD Structure and Investor Breakdown
Jubilant Beverages Ltd will issue Rs 2,650 crore (US$309.6M) in fully paid-up, unsecured, rupee-denominated, listed-rated, redeemable NCDs. The issue is split into Rs 795 crore (US$92.8M) from anchor investors and Rs 1,855 crore (US$216.7M) from a public market offering.
Simultaneously, Jubilant Bevco Ltd plans to raise Rs 3,000 crore (US$350.5M) through a similar issuance. This includes Rs 900 crore (US$105.1M) from anchor commitments and Rs 2,100 crore (US$245.3M) from general investors.
The NCDs for both entities are zero-coupon instruments with maturities of two years, 11 months, and 27 days.
The instruments carry annualised implied yields of 9% for Jubilant Beverages and 9.15% for Jubilant Bevco, and feature a step-up clause: in the event of a credit rating downgrade, the internal rate of return will increase by 25 basis points.
Instead of periodic interest payouts, bondholders will receive a redemption premium at maturity.
Public subscription for the NCDs will commence on June 4, 2025.
Financing Structure and Business Strategy
Proceeds from the NCDs will contribute to the total financing package for the HCCH stake acquisition.
Under the arrangement, Jubilant Beverages Ltd will acquire equity shares from Coca-Cola entities, while Jubilant Bevco and an investor consortium will subscribe to compulsorily convertible preference shares (CCPS) in Jubilant Beverages.
The funding structure includes debt from NCDs, CCPS from private capital providers, and equity infusion from the group’s holding company, Jubilant Bhartia Capital Ltd (JBCL).
The acquisition values Hindustan Coca-Cola Beverages at an enterprise value of Rs 31,250 crore (US$3.65B).
Meanwhile, Jubilant FoodWorks Ltd, operator of Domino’s Pizza in India, is pausing expansion plans for Dunkin’ Donuts and Hong’s Kitchen to focus on core brands and has engaged EY for business restructuring.
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