Private equity firms 360 ONE and TR Capital are among the potential buyers discussing the acquisition of a 20–22% stake in Hector Beverages, the company behind India’s Paper Boat beverage brand. According to The Economic Times, the proposed secondary transaction could value the business at approximately ₹2,700–3,000 crore. The stake is currently held by early investors exploring exits or partial sales.
The discussions come ahead of Hector Beverages’ reported plan for an initial public offering (IPO) in 2027. The transaction could give early investors an opportunity to monetize part of their holdings while bringing new financial investors onto the company’s shareholder register. However, negotiations are ongoing, and neither the final deal structure nor the participation of individual buyers has been confirmed. The reported valuation and potential IPO timeline should therefore be treated as preliminary rather than finalized corporate decisions.
Key Takeaways
- Potential stake sale: 360 ONE and TR Capital are among the investors discussing a purchase of a 20–22% stake in Hector Beverages.
- Proposed valuation: The company could be valued at ₹2,700–3,000 crore under the potential transaction.
- Early investors seek exits: A91 Partners and Sofina are reportedly considering partial exits, while some smaller early investors are looking to sell their entire holdings.
- IPO preparation: The secondary transaction is expected to take place ahead of a reported IPO plan for 2027.
- GIC remains a major shareholder: Singapore’s GIC is reported to hold approximately 34.97% of Hector Beverages.
- Profitability remains a challenge: FY2026 operating revenue rose to around ₹760 crore, but net profit fell sharply to approximately ₹2 crore.
What Is the Proposed Paper Boat Stake Sale?
According to The Economic Times, several early investors in Hector Beverages are exploring a sale of their shares to new financial investors.
The potential buyers include 360 ONE and TR Capital, both of which invest in financial assets and private-market opportunities. The proposed transaction would cover approximately 20–22% of the company and could value Hector Beverages at ₹2,700–3,000 crore, according to people cited in the report.
The transaction is structured as a secondary share sale. In such a deal, existing shareholders sell some or all of their shares to incoming investors. The company does not automatically receive fresh capital from the sale because the proceeds generally go to the shareholders selling their holdings.
This distinction matters because a secondary transaction can change a company’s ownership structure without directly increasing its cash reserves. A separate primary fundraising round, by contrast, would involve the company issuing new shares and receiving the proceeds.
Avendus Capital is reportedly advising on the transaction. The final ownership percentages and terms will depend on negotiations and the shares ultimately purchased.
Which Investors Are Looking to Sell Their Stakes?
The potential sale involves a combination of established venture capital investors and smaller early backers.
| Investor | Reported position |
|---|---|
| A91 Partners | Reportedly considering a partial exit; ET cited a holding of 13.43% |
| Sofina | Reportedly considering a partial exit; ET cited a holding of 18% |
| Sequoia Capital | Reportedly looking to sell its entire stake of approximately 2.19% |
| Footprint Ventures | Reportedly looking to sell its entire stake of approximately 3.08% |
| Eudora Ventures | Reportedly looking to sell its entire stake of approximately 1.22% |
| Mirabilis Investment Trust | Reportedly looking to sell its entire stake of approximately 0.61% |
| Trifecta Capital | Reportedly looking to sell its entire stake of approximately 0.14% |
| Stride Ventures | Reportedly looking to sell its entire stake of approximately 0.08% |
Source: The Economic Times, citing people familiar with the discussions. These are reported holdings and intentions, not confirmation that every investor will participate in a completed transaction.
For early investors, selling shares can provide liquidity after years of holding an investment in a privately owned business. Some may want to realize returns, rebalance their portfolios or reduce exposure before a potential public listing.
A partial exit also allows investors to retain some exposure to future growth. That could be attractive if they believe Paper Boat can increase its distribution, expand its product portfolio and improve profitability ahead of a possible IPO.
Why 360 ONE and TR Capital Could Be Interested
The proposed transaction offers incoming investors an opportunity to buy into an established consumer brand without waiting for a public listing.
Paper Boat operates in India’s packaged beverage market, with products built around traditional drinks and familiar Indian flavors. Its positioning differentiates it from brands focused primarily on conventional carbonated soft drinks and mass-market juices.
For private-market investors, a secondary purchase can provide entry into a company that already has a recognizable brand, an established distribution network and a track record of raising institutional capital.
The reported valuation of ₹2,700–3,000 crore would also give the incoming investors a reference point for evaluating the business ahead of a potential IPO. However, valuation alone does not establish whether a transaction is attractive. Investors must also consider earnings, margins, working-capital requirements, competition and the price at which shares might eventually be offered to public-market investors.
Neither the discussions nor the proposed valuation should be interpreted as a guarantee that the transaction will close at the reported terms.
GIC Remains a Major Shareholder
Hector Beverages has attracted a range of investors over the years, including venture capital firms, private equity investors and strategic backers.
The Economic Times reported that Lathe Investment Pte, an investment holding company associated with Singapore’s sovereign wealth fund GIC, is the company’s largest shareholder, with approximately 34.97%. Founder Neeraj Kakkar reportedly holds 8.20%.
Other investors include Catamaran Ventures, backed by Infosys co-founder N. R. Narayana Murthy, and Hillhouse Capital.
GIC’s substantial holding gives it an important position in the company’s ownership structure. The proposed secondary sale could consolidate shares among larger investors as some earlier backers reduce or exit their positions.
Such changes can simplify the shareholder register before an IPO. A more consolidated ownership structure may make governance, investor communication and public-market preparation easier, although it does not guarantee a successful listing.
Paper Boat’s Financial Performance: Revenue Grows, Profit Falls
Hector Beverages’ financial performance is a central consideration for investors assessing the reported valuation.
The company recorded operating revenue of approximately ₹760 crore in FY2026, up from ₹668 crore in FY2025. However, net profit fell sharply during the same period, indicating that revenue growth did not translate into comparable earnings growth.
| Financial metric | FY2025 | FY2026 | Change |
|---|---|---|---|
| Operating revenue | ₹668 crore | ₹760 crore | Up approximately 13.8% |
| Net profit | ₹46 crore | ₹2 crore | Down approximately 96% |
| Total expenditure | ₹636 crore | ₹776 crore | Up approximately 22% |
| Revenue from traded goods | — | ₹574 crore | Up approximately 30.2% year-on-year |
| Revenue from manufactured goods | — | ₹184 crore | Down approximately 18.6% year-on-year |
Figures are rounded and based on reported FY2026 financial information. Dashes indicate that comparable figures are not shown in this table.
The figures highlight a challenge for Hector Beverages. Revenue expanded, but expenditure grew faster, putting pressure on profitability. The business also generated a larger proportion of revenue from traded goods—products sourced for resale rather than manufactured directly.
The shift in product mix and higher operating costs will be important considerations for prospective investors. A business can grow its sales while experiencing weaker margins, so investors generally examine earnings quality and cash generation alongside revenue.
For a potential IPO, the company’s ability to sustain sales growth and improve profitability could influence how public-market investors assess its valuation.
Why a Potential IPO in 2027 Matters
The reported plan for an IPO in 2027 provides a possible timeline for the secondary stake sale. Investors seeking liquidity may prefer to sell before a public listing, while new private-market buyers could see an opportunity to hold shares through the next phase of the company’s development.
An IPO could allow Hector Beverages to access public capital markets, increase visibility and provide liquidity to shareholders, subject to regulatory approvals and market conditions.
However, a reported IPO plan is not the same as a formally announced offering. The company would still need to determine the issue structure, complete preparations and meet the relevant regulatory requirements. Market conditions, financial performance and shareholder decisions could affect both the timing and feasibility of a listing.
The secondary sale may be one step in preparing the company’s ownership structure, but it does not confirm that an IPO will take place in 2027.
The Bigger Picture
The potential Paper Boat transaction reflects a broader trend in India’s startup and consumer-business ecosystem: early investors are increasingly looking for liquidity from established private companies, while new investors seek opportunities to enter before a possible public listing. Secondary deals can help investors realize returns without requiring the company to raise new capital.
For Hector Beverages, the ownership transition comes at a point when revenue is growing but profitability has come under pressure. The company’s ability to improve margins, manage costs and strengthen its market position could be as important as the reported stake sale in determining its future valuation.
FAQs
1. What is the proposed Paper Boat stake sale?
Private equity firms 360 ONE and TR Capital are among the potential buyers discussing the acquisition of approximately 20–22% of Hector Beverages from early investors. The transaction could value the company at ₹2,700–3,000 crore.
2. Who owns Paper Boat?
Paper Boat is a brand operated by Hector Beverages. Its reported investors include GIC, A91 Partners, Sofina, Catamaran Ventures, Hillhouse Capital and other institutional and early-stage investors.
3. Is the Paper Boat stake sale confirmed?
No. The Economic Times reported that discussions are underway. The final transaction size, valuation, buyer allocations and participating sellers have not been confirmed.
4. Is Paper Boat planning an IPO in 2027?
The Economic Times reported that Hector Beverages is planning a potential IPO in 2027. This should be treated as a reported plan, not a confirmed listing date or completed regulatory process.
5. How did Hector Beverages perform financially in FY2026?
Operating revenue rose to approximately ₹760 crore from ₹668 crore in FY2025, while net profit fell from around ₹46 crore to approximately ₹2 crore. Higher expenditure and changes in product mix contributed to the pressure on profitability.
Looking Ahead
The next development to watch is whether 360 ONE, TR Capital and the selling shareholders reach an agreement on the secondary transaction. A completed deal would clarify the company’s revised ownership structure and establish a clearer valuation reference point ahead of any potential public listing.
For Hector Beverages, investors will also watch whether revenue growth translates into stronger earnings. The company’s ability to manage costs, improve margins and prepare for the requirements of a public listing could shape its investment appeal as it moves toward the reported 2027 IPO timeline.
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