Allied Blenders files draft papers to raise ₹2K cr in IPO

Indian-made foreign liquor (IMFL) maker Allied Blenders and Distillers on Tuesday filed the draft prospectus for an initial public offering to raise ₹2,000 crore.

The company will sell new shares of up to ₹1,000 crore while promoters and some shareholders will sell existing shares in an offer for sale (OFS) of another ₹1,000 crore. The OFS includes Bina Kishore Chhabria selling up to ₹500 crore, Resham Chhabria Jeetendra Hemdev up to ₹250 crore, and Neesha Kishore Chhabria up to ₹250 crore.

Out of the fresh issue proceeds, ₹708.98 crore will be utilized for prepayment or scheduled re-payment of a portion of certain outstanding borrowings and the balance for general corporate purposes.

Mumbai-based Allied Blenders is the third-largest IMFL maker in India and the largest Indian-owned one in terms of annual sales volumes. It is one of the only four spirits companies in India with a pan-India sales and distribution footprint, and is a leading exporter of IMFL, in terms of annual sales volumes between fiscal 2019 to fiscal 2021 with an estimated peak share of 20% in fiscal 2021.

The company started its journey in 1988 with the launch of flagship brand Officer’s Choice Whisky which marked their entry into the mass premium whisky segment. Over the years, ABD has expanded and introduced products across various categories and segments and established market leadership in the alcoholic beverages market in India with a market share of 8.2% in IMFL market by sales volumes in Fiscal 2021. Its main competitors are United Spirits Ltd, Pernod Ricard India Pvt. Ltd and Radico Khaitan Ltd.

As of 31 March, its product portfolio comprised 10 major brands of IMFL across whisky, brandy, rum and vodka.

Allied Blenders and Distillers’ revenue from operations stood at ₹6,378.78 crore for fiscal 2021, and profit after tax at ₹2.51 crore. For nine months ending December 2021, revenue from operations stood at ₹5,444.98 crore and profit after tax at ₹3.30 crore.

ICICI Securities, Axis Capital, JM Financial, Kotak Mahindra Capital and Equirus Capital are advising the company on its IPO.