Allied Blenders and Distillers Limited gets SEBI nod for ₹1,500 crore IPO

Allied Blenders and Distillers, an Indian-made foreign liquor (IMFL) manufacturer, has obtained the final observation from the capital markets regulator, the Securities and Exchange Board of India (SEBI), to proceed with its plan to raise ₹1,500 crore through an initial public offering (IPO).

The liquor making company has refiled its draft papers with the markets regulator on January 15.

The shares are priced at a face value of ₹2 and consist of a combination of a fresh issue of up to ₹1,000 crore and an offer for sale of up to ₹500 crore by the Promoters and Promoter Group.

Also read: Allied Blenders and Distillers refiles IPO papers with SEBI; reduces issue size to ₹1,500 crore

The offer for sale encompasses up to ₹250 crore by Bina Kishore Chhabria, ₹125 crore by Resham Chhabria Jeetendra Hemdev, and ₹125 crore by Neesha Kishore Chhabria. Additionally, the offer includes a provision for subscription by eligible employees.

The funds generated from the new issuance, amounting to ₹720 crore, will be allocated towards the early repayment of certain outstanding borrowings and for general corporate requirements. Additionally, the company, in coordination with the book-running lead managers, may opt for a preferential issue or another approach for a sum of up to ₹200 crore, termed as a "Pre-IPO placement." If this placement is finalized, it will result in a reduction of the size of the fresh issue.

ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited serve as the book-running lead managers, while Link Intime India Private Limited acts as the registrar for the offer. The equity shares are slated for listing on both the BSE and NSE.

Allied Blenders and Distillers (ABD), established in Mumbai in 1988, initially gained prominence with its Officer’s Choice Whisky in the mass premium segment, securing an impressive 11.8% market share in the Indian whisky market in Fiscal 2023. This underscores their significant standing as a leading exporter of Indian Made Foreign Liquor (IMFL).

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Over time, ABD has diversified its portfolio, introducing a range of products across different categories and segments. Leveraging their dominance in the popular segment, Allied Blenders and Distillers have successfully launched acclaimed brands in both prestigious and premium categories. Transitioning from the mass premium whisky segment, the company has strategically shifted its focus towards premiumization. This strategic move is evident with the introduction of brands like ICONiQ White Whisky, Srishti Whisky, and X&O Barrel Whisky.

India ranks as one of the swiftest expanding alcoholic beverage markets globally, securing the third position worldwide, trailing only behind China and Russia. Within this market landscape, Indian Made Foreign Liquor (IMFL) takes precedence, accounting for an estimated 72% share in value within the overall market during Fiscal 2023.