Allied Blenders and Distillers to raise ₹1,500 cr; IPO to open on June 25

Indian-made foreign liquor (IMFL) maker Allied Blenders and Distillers (ABD) has set a price band in the range of ₹267-281 per equity share of the face value of ₹2 for its upcoming initial public offering (IPO), which will open for subscription on June 25, 2024. The maker of Officers’ Choice Whisky looks to raise ₹1,500 crore at the upper end of the IPO price band.

The anchor book will open for a day on June 24 and the issue will close on June 27. The allotment of shares to eligible applicants will be done on June 28, while shares of ABD are slated to be listed on domestic exchanges on July 2.

The issue is a combination of fresh issue of 3.56 crore shares worth ₹1,000 crore and offer for sale (OFS) of 1.78 crore shares aggregating to ₹500 crore. Under the OFS, promoter Bina Kishore Chhabria will be offloading shares worth ₹250 crore, while Resham Chhabria Jeetendra Hemdev and Neesha Kishore Chhabria will sell shares worth ₹125 crore each.

Out of ₹1,000 crore raised from fresh equities, the liquor company intends to use up to ₹720 crore for repayment of debt availed by the company, while the remaining capital will be used to meet general corporate purposes. 

The lot size for an application is 53 shares and the minimum application amount for retail investors is ₹14,893 for one lot.

As per the document filed with the SEBI, ABD has reserved half of the issue for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and remaining 35% for retail investors. The offer also includes a reservation for subscription by eligible employees under retail category.

Established in 1988, Allied Blenders and Distillers offers four Indian-made foreign liquor categories -- whisky, brandy, rum, and vodka, while it sells packaged drinking water under the Officer's Choice, Officer's Choice Blue, and Sterling Reserve brands. The company had received final observation from the capital markets regulator Securities and Exchange Board of India (SEBI) last month. It filed its IPO papers with SEBI on January 15, 2024.

The Mumbai-based company initially entered into the mass premium whisky market with its Officer’s Choice Whisky in 1988. In the financial year 2023, the company was commanding 11.8% of market share in the Indian whisky market, which contributed 97.36% to its revenue in FY23, and 96.95% in the months ended December 2023.

For the financial year ended March 31, 2024, the company posted net profit at ₹1.6 crore, up 8.5% over previous year. Revenue (excluding excise duty) from operations climbed 17.2% to ₹3,146.6 crore during the same period.

For the nine months ended December 2023, net profit jumped 46.8% YoY to ₹4.2 crore and revenue grew by 7.8% to ₹2,560.3 crore versus the same period last year.

Over the years, ABD has expanded and introduced products across various categories and segments, shifting its focus from the mass premium whisky segment to premiumisation. It has launched premium brands such as ICONiQ White Whisky, Srishti Whisky, and X&O Barrel Whisky.

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.

ABD 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.

ICICI Securities, Nuvama Wealth Management, and ITI Capital are the merchant bankers on the issue. Link Intime India is the registrar.