Officer's Choice whisky maker Allied Blenders and Distillers files papers for Rs 2,000 cr IPO

Mumbai-based Allied Blenders and Distillers filed its draft red herring prospectus with the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 2,0000 crore through an initial public offering (IPO). The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 1,000 crore and an offer for sale (OFS) of Rs 1,000 crore by the promoter and selling shareholders which include Bina Kishore Chhabria up to Rs 500 crore, up to Rs 250 crore by Resham Chhabria and Jeetendra Hemdev and up to Rs 250 crore by Neesha Kishore Chhabria.

The offer is being made through the book-building process, wherein not more than 50 per cent of the offer shall be available for allocation to qualified institutional buyers, not less than 15 per cent of the offer shall be available for allocation to non-institutional bidders and not less than 35 per cent of the offer shall be available for allocation to retail individual bidders.

Allied Blenders and Distillers, in consultation with the lead bankers to the issue, may consider a preferential issue of equity shares or any other method aggregating up to Rs 200 crore. If such placement is completed, the fresh issue size will be reduced.

The proceeds from its fresh issuance worth Rs 708.98 crore will be utilised for prepayment or scheduled re-payment of a portion of certain outstanding borrowings and balance for general corporate purposes. The company 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 per cent in fiscal 2021. It started its journey in 1988 with the launch of its flagship brand, Officer’s Choice Whisky which marked its entry into the mass premium whisky segment.

Its main competitors are United Spirits Limited, Pernod Ricard India Private Limited and Radico Khaitan Limited. As of March 31, 2022, their product portfolio comprised 10 major brands of IMFL across whisky, brandy, rum, and vodka.

Allied Blenders and Distillers’ revenue from operations stood at Rs 6,378.78 crore for fiscal 2021, and profit after tax at Rs 2.51 crore. For nine month ending December 2021, revenue from operations stood at Rs 5,444.98 crore and profit after tax at Rs 3.30 crore. For fiscal 2021, and in the nine months ended December 31, 2021, its revenues from export sales were Rs 133.55 crore and Rs 113.24 crore, respectively.

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.