The Jubilant Bhartia Group is gearing up to raise over ₹5,650 crore through non-convertible debentures (NCDs) across two of its group firms to partially fund its ₹12,650 crore acquisition of a 40% stake in Hindustan Coca-Cola Holdings Pvt Ltd (HCCH), India’s largest bottling partner for Coca-Cola.
The fundraising will be split between Jubilant Beverages Ltd and Jubilant Bevco Ltd, both of which are launching bond issues that carry implied annualized yields of 9% and 9.15%, respectively. These zero-coupon, rupee-denominated instruments will mature in two years, 11 months, and 27 days, and feature a step-up clause that raises the return by 25 basis points if the credit rating is downgraded.
The public bond issuance is slated to open on June 4, with Jubilant Beverages aiming to raise ₹2,650 crore. Of this, ₹795 crore will come from anchor investors such as HDFC Mutual Fund, Nippon India Mutual Fund, Franklin Templeton, Aditya Birla Sun Life, Axis Mutual Fund, Nomura Fixed Income, and Bajaj Finance.
Jubilant Bevco, meanwhile, is issuing ₹3,000 crore in similar bonds, with ₹900 crore already secured from anchor institutions.
The proceeds will support the acquisition of HCCH, a deal being jointly executed with Goldman Sachs Asset Management. The transaction, announced in December 2024 and cleared by the Competition Commission of India on May 1, 2025, values HCCH at an enterprise value of ₹31,250 crore.
As part of the funding arrangement, Jubilant Beverages will directly acquire equity shares from Coca-Cola’s entities, while Jubilant Bevco and the private equity partners will subscribe to compulsorily convertible preference shares (CCPS) in the same company. The funding strategy includes a mix of bond proceeds, private capital through CCPS, and equity infusion from Jubilant Bhartia’s holding company, JBCL.
In a related development, Jubilant FoodWorks Ltd (JFL) — operator of Domino’s Pizza in India — is putting a pause on the expansion of its smaller brands, Dunkin’ Donuts and Hong’s Kitchen. Instead, the company is focusing resources on scaling Domino’s Pizza and Popeyes, as the group consolidates operations amid the major HCCH acquisition.
“We have already taken the stance of curtailing or halting any expansion in Dunkin’ and Hong’s,” said Sameer Khetarpal, MD of JFL, during a recent earnings call.
JFL has hired EY (Ernst & Young) to help restructure the business and explore the potential divestment of underperforming brands. The company had scaled down Dunkin’ Donuts from a peak of 70+ stores to 31 outlets across 14 cities, focusing on kiosk formats to manage fixed costs.
As of March 31, 2025, Domino’s Pizza operated 2,179 outlets across 475 cities, cementing its dominance in the Indian QSR space. In the January-March quarter, JFL reported a 12.1% year-on-year like-for-like growth for Domino’s and overall group revenue growth of 19%.
According to ICICI Securities, the growth was driven by aggressive pricing, improved delivery times, and product innovation. However, it cautioned that input cost inflation and rising competition remain key downside risks.
Despite short-term restructuring, Jubilant Bhartia Group’s strategic move to invest in HCCH positions it to significantly expand its footprint in India’s fast-growing non-alcoholic beverage segment, while realigning its QSR portfolio for long-term profitability.