Indian-made foreign liquor (IMFL) maker Allied Blenders and Distillers has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 1500 crore through an initial public offering (IPO). The Company had refiled its IPO papers with Sebi on January 15, 2024.
The shares are offered at a face value of Rs 2 and is a mix of fresh issue of up to Rs 1000 crore and an offer for sale of up to Rs 500 crore by Promoters and Promoter Group.
The offer for sale comprises up to Rs 250 crore by Bina Kishore Chhabria, Rs 125 crore by Resham Chhabria Jeetendra Hemdev and Rs 125 crore by Neesha Kishore Chhabria. The offer also includes a reservation for subscription by eligible employees.
The proceeds from its fresh issuance to the extent of Rs 720 crore will be utilized for prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company and for general corporate purposes.
The company, in consultation with the book-running lead managers, may be through a preferential issue or any other method for a consideration aggregating up to Rs 200 crore as “Pre-IPO placement”. If such placement is completed, the fresh issue size will be reduced.
Allied Blenders and Distillers (ABD), a Mumbai-based company established in 1988, initially with its Officer’s Choice Whisky in the mass premium segment, with a market share of 11.8% in Fiscal 2023 in the Indian whisky market, highlighting their strong position as a leading exporter of IMFL.
Over the years, ABD has expanded and introduced products across various categories and segments. Allied Blenders and Distillers have successfully leveraged their strength in the popular segment to launch successful brands in both prestige and premium segments. The company has shifted its focus from mass premium whisky segment to premiumization, with the launch of brands like ICONiQ White Whisky, Srishti Whisky, and X&O Barrel Whisky.
As reported the company in April 2024, the Company made a remarkable feat with its new brand, ICONiQ White Whisky, reaching 2 million cases sold in its first year since launch. Additionally, in January 2024, ABD introduced Zoya Special Batch Premium Gin, further expanding their product offerings beyond whisky.
The Company has a nationwide sales and distribution network spanning 30 states and union territories, with products available in 79,329 outlets. As of August 31, 2023, their product portfolio comprised 17 major brands of IMFL across whisky, brandy, rum, and vodka.
India is one of the fastest growing alcoholic beverage markets in the world making it the third largest market in the world after China and Russia. The market is dominated by IMFL which is estimated to contribute close to 72% in value to the overall market in Fiscal 2023. The industry’s growth is driven by rising incomes, growing urbanization, and increasing awareness towards western tastes and trends, leading to premiumization. There is a shift in the purpose of whisky consumption from being a stimulant to recreation and socializing, driving the trend further.
ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited, are the book-running lead managers, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
