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

Indian-made foreign liquor (IMFL) maker Allied Blenders and Distillers has refiled papers with market regulator Securities and Exchange Board of India (SEBI) to raise 1,500 crore through an initial public offering (IPO). The company had initially filed draft red herring prospectus (DRHP) with the market regulator in June 2022 to raise ₹2,000 crore.

Allied Blenders and Distillers IPO consists of a fresh issue of equity shares aggregating up to 1,000 crore and an offer-for-sale (OFS) aggregating up to ₹500 crore, as per company's DRHP dated January 15.

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In accordance with the DRHP, the company plans to use the net proceeds to finance the following goals such as to meet general corporate objectives; prepayment or planned repayment of a part of certain existing borrowings that the company has obtained.

In the OFS, promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra Hemdev would sell shares valued at ₹250 crore and ₹125 crore, respectively. Another member of the promoter group, Neesha Kishore Chhabria, plans to sell shares in the OFS for ₹125 crore.

From the ₹1,000 crore stated in the previous DRHP the company submitted with the SEBI, the OFS size has been slashed in half to ₹500 crore. Further, the OFS component was reduced by all three promoters to half.

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The company may think about raising an additional ₹200 crore via a preferential issue or any other means prior to registering the red herring prospectus for a pre-IPO placement with the registrar of companies.

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Allied Blenders and Distillers IPO's book running lead managers are ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited. The registrar to the offer is Link Intime India Private Limited. 

According to the Technopak Report, the firm ranks third among Indian IMFL companies in terms of yearly sales volumes between Fiscal 2014 and Fiscal 2022, and it is the largest Indian-owned IMFL company, as stated in the DRHP.

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The firm has an expected market share (in terms of sales volume) of 11.8% in the Indian whisky industry for the fiscal year 2023. It is one of only four spirits companies in India with a pan-Indian sales and distribution network, and it is a prominent exporter of IMFL.

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