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Time of India
3 days ago
- Business
- Time of India
Jubilant Bhartia plans Rs 5,600 crore bond issue to fund Coca-Cola deal
Jubilant Bhartia Group is looking to raise over ₹5,650 crore through non-convertible debentures ( NCDs ) across two group entities to part-fund its ₹12,650 crore acquisition of a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd (HCCH), the parent of Coca-Cola 's largest bottling partner in India. Jubilant Beverages Ltd will issue ₹2,650 crore in fully paid-up, unsecured, rupee-denominated, listed-rated, redeemable NCDs, according to people familiar with the matter. The offering will include ₹795 crore from anchor investors and ₹1,855 crore via a non-anchor tranche. Separately, Jubilant Bevco Ltd is raising ₹3,000 crore through a similar bond issuance. Step-up Clause This includes ₹900 crore from anchor subscriptions and ₹2,100 crore from the wider market. Both bond issuances are structured as zero-coupon instruments with tenures of two years, 11 months, and 27 days. They offer implied annualised yields of 9% for Jubilant Beverages and 9.15% for Jubilant Bevco. The NCDs feature a step-up clause that increases the internal rate of return by 25 basis points in the event of a credit rating downgrade. Instead of periodic coupons, a redemption premium will be paid at maturity. The public issuance opens on June 4. Eight anchor investors have committed ₹900 crore in the Jubilant Bevco tranche. These include 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 Ltd., and Bajaj Finance Ltd. There are six anchor investors, including HDFC Mutual Fund, Nippon India Mutual Fund, Franklin Templeton Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Nomura Fixed Income Securities Ltd., who have committed ₹795 crore in the Jubilant Beverages Ltd. issue. The proceeds will help finance the acquisition of HCCH by the Jubilant Bhartia Group and funds managed by Goldman Sachs Asset Management. The deal was announced in December 2024 and received approval from the Competition Commission of India on May 1, 2025. Under the transaction structure, Jubilant Beverages Ltd. 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 Ltd. The funding mix includes ₹5,650 crore of debt, CCPS from private capital providers, and the remainder via equity infusion by Jubilant Bhartia's holding company, JBCL. The transaction pegs the enterprise value of Hindustan Coca-Cola Beverages at ₹31,250 crore. JUBILANT STALLS PLANS Separately, Jubilant FoodWorks Ltd (JFL), operator of Domino's Pizza, has stalled the expansion of global coffee and doughnut chain Dunkin' Donuts and Chinese fast casual brand Hong's Kitchen, to focus on its other larger brands Domino's Pizza and Popeyes, amid the group's acquisition of HCCB. JFL, India's largest food services operator, has roped EY to restructure and streamline the business, as well as explore the possibility of selling off franchisee rights of some of its smaller brands such as Hong's Kitchen and Dunkin' Donuts in India, people directly aware of the development said. "We have already taken the stance of curtailing any or not doing any expansion in Dunkin' and Hong's," Sameer Khetarpal, managing director of Jubilant FoodWorks told analysts on a post Q4 investor call last week. Domino's Pizza's store count stood at 2,179 restaurants in India across 475 cities as of March 31, '25 . In contrast, there are 31 Dunkin' stores in 14 cities as of March 31, '25, as per JFL's website. JFL had opened its first Dunkin' Donuts in India in 2012, and expanded to over 70 stores rapidly. "However, since then, the chain has shut down most of its unprofitable stores to curtail fixed operating costs and overheads amid subdued sales, and instead focused on smaller and kiosk format outlets," one of the executives said. Jubilant Bhartia Group, JFL and EY did not respond to email queries. For the January-March '25 quarter, Domino's India reported like-for-like year-on-year growth of 12.1%, while at an overall group level, JFL reported revenue growth of 19% year-on-year."Execution on pricing, delivery time and product innovation drove order growth of 25%-plus year-on-year. Key downside risks are raw material costs turning inflationary and higher than expected increase in competitive intensity," ICICI Securities wrote in a report on May 15.
News18
3 days ago
- Business
- News18
Jubilant Bhartia Plans Rs 5,650 Crore NCDs To Fund Coca-Cola Bottler Deal
Last Updated: 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. First Published: May 30, 2025, 07:49 IST
Economic Times
3 days ago
- Business
- Economic Times
Jubilant Bhartia plans Rs 5,600 crore bond issue to fund Coca-Cola deal
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Jubilant Bhartia Group is looking to raise over ₹5,650 crore through non-convertible debentures ( NCDs ) across two group entities to part-fund its ₹12,650 crore acquisition of a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd (HCCH), the parent of Coca-Cola's largest bottling partner in Beverages Ltd will issue ₹2,650 crore in fully paid-up, unsecured, rupee-denominated, listed-rated, redeemable NCDs, according to people familiar with the offering will include ₹795 crore from anchor investors and ₹1,855 crore via a non-anchor Jubilant Bevco Ltd is raising ₹3,000 crore through a similar bond includes ₹900 crore from anchor subscriptions and ₹2,100 crore from the wider bond issuances are structured as zero-coupon instruments with tenures of two years, 11 months, and 27 days. They offer implied annualised yields of 9% for Jubilant Beverages and 9.15% for Jubilant Bevco. The NCDs feature a step-up clause that increases the internal rate of return by 25 basis points in the event of a credit rating downgrade. Instead of periodic coupons, a redemption premium will be paid at public issuance opens on June 4. Eight anchor investors have committed ₹900 crore in the Jubilant Bevco tranche. These include 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 Ltd., and Bajaj Finance Ltd. There are six anchor investors, including HDFC Mutual Fund, Nippon India Mutual Fund, Franklin Templeton Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Nomura Fixed Income Securities Ltd., who have committed ₹795 crore in the Jubilant Beverages Ltd. proceeds will help finance the acquisition of HCCH by the Jubilant Bhartia Group and funds managed by Goldman Sachs Asset Management. The deal was announced in December 2024 and received approval from the Competition Commission of India on May 1, the transaction structure, Jubilant Beverages Ltd. 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 Ltd. The funding mix includes ₹5,650 crore of debt, CCPS from private capital providers, and the remainder via equity infusion by Jubilant Bhartia's holding company, JBCL. The transaction pegs the enterprise value of Hindustan Coca-Cola Beverages at ₹31,250 Jubilant FoodWorks Ltd (JFL), operator of Domino's Pizza, has stalled the expansion of global coffee and doughnut chain Dunkin' Donuts and Chinese fast casual brand Hong's Kitchen, to focus on its other larger brands Domino's Pizza and Popeyes, amid the group's acquisition of HCCB. JFL, India's largest food services operator, has roped EY to restructure and streamline the business, as well as explore the possibility of selling off franchisee rights of some of its smaller brands such as Hong's Kitchen and Dunkin' Donuts in India, people directly aware of the development said."We have already taken the stance of curtailing any or not doing any expansion in Dunkin' and Hong's," Sameer Khetarpal, managing director of Jubilant FoodWorks told analysts on a post Q4 investor call last Pizza's store count stood at 2,179 restaurants in India across 475 cities as of March 31, '25 . In contrast, there are 31 Dunkin' stores in 14 cities as of March 31, '25, as per JFL's website. JFL had opened its first Dunkin' Donuts in India in 2012, and expanded to over 70 stores rapidly. "However, since then, the chain has shut down most of its unprofitable stores to curtail fixed operating costs and overheads amid subdued sales, and instead focused on smaller and kiosk format outlets," one of the executives Bhartia Group, JFL and EY did not respond to email the January-March '25 quarter, Domino's India reported like-for-like year-on-year growth of 12.1%, while at an overall group level, JFL reported revenue growth of 19% year-on-year."Execution on pricing, delivery time and product innovation drove order growth of 25%-plus year-on-year. Key downside risks are raw material costs turning inflationary and higher than expected increase in competitive intensity," ICICI Securities wrote in a report on May 15.
Time of India
3 days ago
- Business
- Time of India
Jubilant Bhartia plans Rs 5,600 crore bond issue to fund Coca-Cola deal
Mumbai: Jubilant Bhartia Group is looking to raise over ₹5,650 crore through non-convertible debentures ( NCDs ) across two group entities to part-fund its ₹12,650 crore acquisition of a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd (HCCH), the parent of Coca-Cola's largest bottling partner in India. Jubilant Beverages Ltd will issue ₹2,650 crore in fully paid-up, unsecured, rupee-denominated, listed-rated, redeemable NCDs, according to people familiar with the matter. The offering will include ₹795 crore from anchor investors and ₹1,855 crore via a non-anchor tranche. Bonds Corner Powered By Jubilant Bhartia plans Rs 5,600 crore bond issue to fund Coca-Cola deal Jubilant Bhartia Group is set to raise ₹5,650 crore through NCDs to partially fund its ₹12,650 crore acquisition of a 40% stake in Hindustan Coca-Cola Holdings. Jubilant Beverages and Jubilant Bevco will issue bonds with implied annualised yields around 9%. Meanwhile, Jubilant FoodWorks is halting expansion of Dunkin' Donuts and Hong's Kitchen to focus on Domino's Pizza and Popeyes. Shapoorji Pallonji Group secures $3.4 billion in private credit deal LIC invests Rs 5,000 crore in Adani Ports NCD Adani Ports' bond sale draws LIC interest on India market return, sources say India bonds stable after benchmark breaches key level on rate-cut hopes Browse all Bonds News with Separately, Jubilant Bevco Ltd is raising ₹3,000 crore through a similar bond issuance. Agencies Step-up Clause Live Events This includes ₹900 crore from anchor subscriptions and ₹2,100 crore from the wider market. Both bond issuances are structured as zero-coupon instruments with tenures of two years, 11 months, and 27 days. They offer implied annualised yields of 9% for Jubilant Beverages and 9.15% for Jubilant Bevco. The NCDs feature a step-up clause that increases the internal rate of return by 25 basis points in the event of a credit rating downgrade. Instead of periodic coupons, a redemption premium will be paid at maturity. The public issuance opens on June 4. Eight anchor investors have committed ₹900 crore in the Jubilant Bevco tranche. These include 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 Ltd., and Bajaj Finance Ltd. There are six anchor investors, including HDFC Mutual Fund, Nippon India Mutual Fund, Franklin Templeton Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Nomura Fixed Income Securities Ltd., who have committed ₹795 crore in the Jubilant Beverages Ltd. issue. The proceeds will help finance the acquisition of HCCH by the Jubilant Bhartia Group and funds managed by Goldman Sachs Asset Management. The deal was announced in December 2024 and received approval from the Competition Commission of India on May 1, 2025. Under the transaction structure, Jubilant Beverages Ltd. 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 Ltd. The funding mix includes ₹5,650 crore of debt, CCPS from private capital providers, and the remainder via equity infusion by Jubilant Bhartia's holding company, JBCL. The transaction pegs the enterprise value of Hindustan Coca-Cola Beverages at ₹31,250 crore. JUBILANT STALLS PLANS Separately, Jubilant FoodWorks Ltd (JFL), operator of Domino's Pizza, has stalled the expansion of global coffee and doughnut chain Dunkin' Donuts and Chinese fast casual brand Hong's Kitchen, to focus on its other larger brands Domino's Pizza and Popeyes, amid the group's acquisition of HCCB. JFL, India's largest food services operator, has roped EY to restructure and streamline the business, as well as explore the possibility of selling off franchisee rights of some of its smaller brands such as Hong's Kitchen and Dunkin' Donuts in India, people directly aware of the development said. "We have already taken the stance of curtailing any or not doing any expansion in Dunkin' and Hong's," Sameer Khetarpal, managing director of Jubilant FoodWorks told analysts on a post Q4 investor call last week. Domino's Pizza's store count stood at 2,179 restaurants in India across 475 cities as of March 31, '25 . In contrast, there are 31 Dunkin' stores in 14 cities as of March 31, '25, as per JFL's website. JFL had opened its first Dunkin' Donuts in India in 2012, and expanded to over 70 stores rapidly. "However, since then, the chain has shut down most of its unprofitable stores to curtail fixed operating costs and overheads amid subdued sales, and instead focused on smaller and kiosk format outlets," one of the executives said. Jubilant Bhartia Group, JFL and EY did not respond to email queries. For the January-March '25 quarter, Domino's India reported like-for-like year-on-year growth of 12.1%, while at an overall group level, JFL reported revenue growth of 19% year-on-year."Execution on pricing, delivery time and product innovation drove order growth of 25%-plus year-on-year. Key downside risks are raw material costs turning inflationary and higher than expected increase in competitive intensity," ICICI Securities wrote in a report on May 15.
