Paper Boat stake sale talks eye ₹2,700–3,000 crore valuation

Paper Boat stake sale discussions involve potential buyers including 360 ONE and TR Capital, with early investors looking to sell about 20–22% of brand owner Hector Beverages. As of October 26, 2026, the proposed secondary transaction could value the Indian beverage company at ₹2,700–3,000 crore, people familiar with the discussions said. No completed deal has been announced.

Key Takeaways

• 360 ONE and TR Capital are among potential buyers discussing a 20–22% stake purchase.
• Some investors are seeking full exits, while A91 Partners and Sofina are discussing partial sales.
• The proposed transaction would precede a planned 2027 IPO; neither step is complete.

Table of Contents

• Paper Boat stake talks focus on early-investor exits
• Revenue and earnings move in different directions
• A traditional-drinks business prepares for its next ownership phase
• Conclusion

Paper Boat stake talks focus on early-investor exits

A91 Partners, which holds 13.43% of Hector Beverages, and Sofina, with an 18% holding, are discussing partial exits. Other early investors, including Footprint Ventures and Sequoia Capital, are seeking to sell their entire holdings, people familiar with the matter said.

Avendus Capital is advising on the proposed transaction. The discussions are intended to simplify the shareholder structure and consolidate ownership among larger investors before the planned IPO.

Because the proposal involves existing shareholders selling shares, it is an investor-exit transaction rather than a fresh capital raise for Hector Beverages. The valuation range remains indicative, not an agreed transaction price.

Hector Beverages and A91 declined to comment. Several other parties, including 360 ONE and TR Capital, had not responded to requests for comment by publication.

Revenue and earnings move in different directions

Hector Beverages recorded higher revenue but lower earnings before interest, taxes, depreciation and amortization in FY26, based on Tracxn data. The figures show that increased sales did not translate into higher operating earnings.

People familiar with the business put potential FY27 revenue at ₹1,000–1,200 crore and EBITDA at ₹80–100 crore. Those figures are expectations attributed to unnamed people, not published management guidance or completed results.

A traditional-drinks business prepares for its next ownership phase

Hector Beverages’ company history traces its founding to 2009 and the launch of Paper Boat traditional drinks to 2013. It subsequently expanded into snacks, introducing Paper Boat chikki in 2016.

The brand built its identity around traditional Indian flavors such as Aam Panna and Jamun Kala Khatta, sold in flexible spout pouches. Hector Beverages later broadened its product range and packaging formats.

Lathe Investment, an investment holding subsidiary of Singapore’s GIC, is the largest shareholder with 34.97%, while founder Neeraj Kakkar holds 8.20%, according to Tracxn data. The proposed sale would reshape part of the remaining ownership ahead of the planned listing.

Conclusion

The next milestone is whether the stake discussions produce an agreed transaction, including confirmed buyers and pricing. The 2027 IPO remains a plan rather than a completed or formally priced offering.

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