Fizzing with Opportunity: Jubilant Bhartia Brews Rs 2,000 Crore for Coca-Cola Bottling Stake

Jubilant Bhartia Group promoters are strategically exiting minority stakes in their listed companies to raise Rs 2,000 crore, a critical step to finance their acquisition of a 40% stake in Hindustan Coca-Cola Beverages (HCCB). This apart from Goldman Sachs Asset Management's $600 million raised for the deal.

Strategic Asset Divestment

The promoters are offering stakes in Jubilant FoodWorks, Jubilant Pharmova, Jubilant Ingrevia, and Jubilant Industries for sale.

Money is being raised also by disposing of non-core assets of pharma and food firms.

Deal's Financial Structure

The transaction is placing Coca-Cola's bottling operation at Rs 31,250 crore, inclusive of debt.

The transaction involves Jubilant Beverages purchasing HCCB stocks of Coca-Cola entities of its Coca-Cola entities.

Jubilant Bevco and investors led by Goldman Sachs will subscribe to compulsorily convertible preference shares in Jubilant Beverages.

Regulatory and Market Developments

The deal, announced in December 2024, received the approval of the Competition Commission of India in May 2025.

Asset sale and stake disposal are being guided to the promoters by Morgan Stanley.

Implications for Jubilant's Business Portfolio

Jubilant FoodWorks, the owner of Domino's Pizza, Popeyes, and Dunkin' Donuts, is a key player in the exit strategy.

Restructuring also comprises Jubilant Pharmova, which is into radiopharma and drug research.

Sources: Economic Times, ET Now News, Legal Economic Times.