Probably the best beer in the world may just be the coolest Indian IPO this summer. But if Carlsberg A/S wants to maximize the valuation of its planned stock offer, it had better rush it across the counter. Happy hour could be over soon. With the US Federal Reserve signalling two more interest-rate hikes this year, the Indian market’s thirst for new paper – up 77 per cent so far in 2018 from last year – could dry up.
Pedigreed consumer stocks, such as the country’s third-largest-selling beer, are still likely to see buyers, but capturing anywhere near the 73 times price-earnings multiple of United Breweries Ltd., which makes India’s most-popular Kingfisher brand, will need all the froth the Danish brewer can muster. That’s largely a question of timing. But Carlsberg doesn’t appear to be fully ready. Bloomberg News has reported that it’s still meeting arrangers, and a transaction isn’t certain.
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