By Aditya Kalra

NEW DELHI, Oct 8 (Reuters) - Indian craft beer maker

Bira is in talks to raise $132 million in its biggest ever

fundraising, with New York-based investment group Global

Emerging Markets (GEM) as one of the potential suitors,

according to term sheets seen by Reuters.

Bira has become popular over the years amid a thriving

social drinking scene across the country. The market is still

dominated by likes of AB InBev, Carlsberg

and Heineken, with Bira having an under 5% share.

Term sheets seen by Reuters show Bira is in talks to raise

$50 million via the equity route from alternative investment

group GEM, and another $82 million via structured credit.

It's not clear what stake Global Emerging Markets would pick

up in Bira, and the group did not respond to Reuters queries.

"We confirm that we have received term sheets for

substantial investments in the company in the form of structured

debt and equity," Bira CEO Ankur Jain told Reuters, declining to

share investors' names or amounts.

In 2022, Bira acquired beverage chain operator The Beer Cafe

to get access to more restaurants and pubs.

But India remains a tough regulatory environment for liquor

companies.

Jain said Bira in 2023/24 changed its registered name from

B9 Beverages Private Ltd to B9 Beverages Ltd. The move he said

caused 800 million rupees ($9 million) in losses as it triggered

months of business disruption as state regulations required each

brand and label to be registered again across dozens of Indian

states.

Any funds raised will be used for working capital needs and

clear pending dues, adding that the "company has been making

serious efforts for business recovery including restructuring

its sales and supply chain operations", he added.

Launched in 2015, Bira has so far raised $210 million and

was valued at $450 million two years ago. It is also counts

Japan's Kirin ( KNBWF ) and Peak XV, formerly known as Sequoia

Capital India, among its investors.