Pernod Ricard said to kick off process for India IPO
Spirits giant Pernod Ricard is reportedly eyeing a potential initial public offering (IPO) of its India business arm, according to reports from Bloomberg News.
Pernod Ricard, the maker of Absolut vodka, has begun working on a potential IPO of its Indian business, Bloomberg reported on Monday 20 April, citing unnamed sources.
The French spirit maker’s Indian unit is working with Goldman Sachs and legal firm Cyril Amarchand Mangaldas, and is likely to appoint advisers and kick off the formal process soon, the article revealed.
An IPO is the process by which a private company sells shares to the public for the first time, transitioning into a publicly traded company.
Speaking to Reuters, a company spokesperson said that Pernod Ricard “regularly assesses and evaluates its strategic opportunities and is continuously exploring options to create value for its shareholders, including optimizing its capital structure. This is a usual process in line with management’s mission of delivering value to shareholders, employees, clients and stakeholders.”
“At this stage, no decision has been made regarding any particular action or involving any of these options,” the spokesperson added.
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Deliberations are ongoing, and details of the operation are subject to change.
In February, the company’s CEO told Reuters that it had nothing new on the horizon in terms of an IPO of its Indian unit, following reports that it was considering a listing.
The Paris-headquartered company, which is a major player in the Indian liquor market, boasts an expansive portfolio in India including Royal Stag, 100 Pipers, Blenders Pride, Ballantine’s and Chivas Regal.
Last year, Pernod Ricard India sold its Imperial Blue business unit to Tilaknagar Industries – one of India’s largest alcohol companies.
Pernod Ricard did not immediately respond to the drinks business’ request for comment.
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