Alaied Blenders and Distillers Ltd., which makes Officer's Choice Whisky, announced on May 14 that it has been given the go-ahead by market regulator Sebi to raise Rs 1,500 crore through an initial public offering.
Issue Details
According to the Draft Red Herring Prospectus (DRHP), the initial share sale consists of a promoter offer-for-sale (OFS) of shares valued at Rs 500 crore and a new issuance of equity shares valued at Rs 1,000 crore.
Neesha Kishore Chhabria, Resham Chhabria, Jeetendra Hemdev, and Bina Kishore Chhabria will sell shares as part of the OFS. The update indicated that on May 10, Allied Blenders and Distillers Ltd., which had submitted preliminary IPO papers to Sebi in January,.
Up to Rs 250 crore from Bina Kishore Chhabria, Rs 125 crore from Resham Chhabria Jeetendra Hemdev, and Rs 125 crore from Neesha Kishore Chhabria are included in the offer for sale. Furthermore, the offer contains a clause allowing qualified employees to subscribe.
The proceeds of the new issue, totaling Rs 720 crore, will be used for general corporate needs as well as the early repayment of a few outstanding debts.
Pre-IPO
Furthermore, the company may choose to pursue a preferential issue or another strategy for a maximum of Rs 200 crore, referred to as a "pre-IPO placement," in collaboration with the book-running lead managers. In the event that this placement is confirmed, the new issue will be smaller
Although Sebi gave the company permission to launch its public offering, the launch of the IPO was never carried out. Alcoholic beverage production, marketing, and sales are the activities of Allied Blenders and Distillers, both in India and overseas.
Company's Portfolio
As of December 2023, the company's total debt was estimated at around Rs 800 crore. Allied Blenders and Distillers filed a draft for a Rs 2,000 crore initial public offering (IPO) with Sebi in 2022, and as of fiscal 2023, they held a market share of over 8% in the Indian-Made Foreign Liquor (IMFL) market based on sales volumes.
The company offers a variety of brands of Indian-Made Foreign Liquor (IMFL), including vodka, rum, brandy, and whisky. Among the company's well-known brands are Class 21 Vodka, Jolly Roger Rum, Officer's Choice Whisky, and Sterling Reserve Whisky.
India is the third-largest alcoholic beverage market in the world, only behind China and Russia. It is one of the fastest growing markets in the world. In this market landscape, Indian Made Foreign Liquor (IMFL) is the dominant product, accounting for an estimated 72% of the market's total value in fiscal 2023.
