Carlsberg A/S is planning to launch a local IPO for its Indian business as it looks to tap the growing demand in India's middle class for international beer, Bloomberg reported June 13, citing people with knowledge of the matter.

The beer market in India is expected to grow to $10.7 billion in 2020 from $8.6 billion in 2017, according to Euromonitor International, and the Denmark-based brewer is looking at potential arrangers for the launch of the share sale in the next few weeks, the report said. However, details of the IPO have not been set, and there is no assurance it will end with a transaction, the sources told Bloomberg.

Carlsberg is reportedly ranked third in India with a 13.7% market share behind local giant United Breweries Ltd., with a 39.2% market share, and Anheuser-Busch Inbev SA/NV, which has 23.3%, the report said, citing Euromonitor data.

The brewer may be attracted to the high valuations in the Indian Stock Market, where according to data compiled by the news agency, United Breweries trades at about 73x its estimated earnings, while its shares rose 62% in the past 12 months.

A Carlsberg representative declined to comment to Bloomberg, the report said.