BackOfficer's Choice whisky maker files draft papers for ₹2,000 crore IPO
Allied Blender's IPO to consist fresh issue of ₹1,000 crore and OFS of up to shares worth ₹1,000 crore
PremiumIndian spirits manufacturer Allied Blenders & Distillers Pvt has filed its draft red-herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise funds up to ₹2,000 crore via initial public offering (IPO).
The maker of Officer's Choice Whisky's initial share sale of ₹2,000 crore, will consist a fresh issue of ₹1,000 crore and an offer for sale (OFS) of up to shares worth ₹1,000 crore by promoters and shareholders.
Promoter Bina Kishore Chhabria will be selling shares worth ₹500 crore via OFS whereas promoters Resham Chhabria Jeetendra Hemdev and Neesha Kishore Chhabria will offload shares worth ₹250 crore each, the company's draft prospectus showed.
The company's promoters are Kishore Rajaram Chhabria, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, Bina Chhabria Enterprises Private Limited, BKC Enterprises Private Limited, Oriental Radios Private Limited, and Officer’s Choice Spirits Private Limited.
The company intends to utilize proceeds raised via IPO towards prepayment or scheduled repayment of all, or a portion, of the principal amount on certain loans availed by the company.
“We have incurred indebtedness and an inability to comply with repayment and other covenants in our financing agreements could adversely affect our business and financial condition. In addition, certain of our financing agreements involve variable interest rates and an increase in interest rates may adversely affect our results of operations and financial condition," the Mumbai-based distiller said in its offer document.
Allied Blenders and Distillers (ABD), the largest Indian spirits company and maker of iconic products like Officer's Choice Whisky and Sterling Reserve. Allied Blenders sells spirits ranging from whiskey and rum to brandy and vodka across 29 countries, according to its website. It owns nine bottling units, one distilling facility and over 20 outsourced manufacturing sites.
Allied Blenders and Distillers’ revenue from operations stood at ₹6,378 crore for Fiscal 2021 while for nine month ending December 2021, revenue from operations stood at ₹5,444.9 crore.
ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited and Equirus Capital Private Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
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