Jubilant Bhartia Plans Rs 5,650 Crore NCDs To Fund Coca-Cola Bottler Deal

Last Updated:May 30, 2025, 08:46 IST

Jubilant Bhartia Group to raise Rs 5,650 crore via NCDs for its Rs 12,650 crore acquisition of 40% stake in Hindustan Coca-Cola Holdings

Jubilant Bhartia Group is set to raise over Rs 5,650 crore via non-convertible debentures (NCDs) issued by two group entities to part-finance its Rs 12,650 crore acquisition of a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd (HCCH), the parent of Coca-Cola’s largest bottler in India.

Jubilant Beverages Ltd plans to issue Rs 2,650 crore worth of fully paid-up, unsecured, rupee-denominated, listed-rated, redeemable NCDs, according to people familiar with the matter told News18. Of this, Rs 795 crore will be raised from anchor investors and Rs 1,855 crore from a non-anchor tranche.

Separately, Jubilant Bevco Ltd will raise Rs 3,000 crore through a similar zero-coupon bond issuance, split between Rs 900 crore from anchor subscriptions and Rs 2,100 crore from broader market participants.

Both bond issues will mature in two years, 11 months, and 27 days, offering implied annualised yields of 9% for Jubilant Beverages and 9.15% for Jubilant Bevco. They also carry a step-up clause that boosts the internal rate of return by 25 basis points if there is a credit rating downgrade. Instead of periodic interest payments, a redemption premium will be paid at maturity.

The public issuance opens on June 4. Eight anchor investors have already committed Rs 900 crore in the Jubilant Bevco tranche, including HDFC Mutual Fund, Nippon India Mutual Fund, Franklin Templeton Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Kotak Mahindra Mutual Fund, Nomura Fixed Income Securities, and Bajaj Finance Ltd. In Jubilant Beverages’ issue, six anchor investors, including HDFC Mutual Fund and Nippon India Mutual Fund, have committed Rs 795 crore.

Under the deal, Jubilant Beverages will acquire equity shares from Coca-Cola entities, while Jubilant Bevco and the investor consortium will subscribe to compulsorily convertible preference shares (CCPS) in Jubilant Beverages. The funding will be a mix of Rs 5,650 crore in debt, CCPS from private capital providers, and the rest through equity infusion by Jubilant Bhartia’s holding company, JBCL. The acquisition values Hindustan Coca-Cola Beverages at Rs 31,250 crore.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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