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BUSINESS NEWS: Cobra raises cash instead of IPO
Cobra beer has delayed its plans to float on the London Stock Exchange, instead successfully raising £27.5 million. The capital will be used to finance the next phase of the company’s development before it lists in June 2009.
Cobra founder Karan Bilimoria commented, “Now we have the funds we need for our medium-term development and have ambitious plans to build on the current success of Cobra Beer to reach our goalâ€.
Cobra will focus on growing its business in existing key markets, as well as developing export activities, according to Dynshaw Italia, finance director and COO.
“As the largest sum of money that Cobra Beer has raised to date, these funds will help strengthen the brand within the UK and enable the company to establish a strong foothold in India,†he said.
The company anticipates substantial growth in India’s beer market over the next 10 years and hopes to capitalise on a market that hasn’t yet been fully liberalised.
Cobra already has a licensing agreement with Mount Shivalik in Rajasthan, but has plans to establish further brewing capacity in other parts of India. The company hasn’t commented on reports claiming that it has already signed three licensing deals with brewers in India.
© db August 2006