Allied Blenders and Distillers (ABD), renowned for its popular brands such as Officer's Choice and Sterling Reserve, is set to launch its eagerly awaited initial public offering (IPO) on Tuesday, June 25. This marks a significant milestone for the company, which has established itself as a major player in the Indian-made foreign liquor (IMFL) sector. Investors are particularly interested in the specifics of this IPO, including the price band, the allocation of proceeds, and the company's financial status.
The IPO aims to raise Rs 1,500 crore, a crucial step for ABD in enhancing its market presence and reducing its debt. The shares are priced between Rs 267 and Rs 281 each, reflecting the company's robust distribution network that spans 22 international markets, making it an attractive prospect for investors.
Detailed Information on the IPO
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Dates: The IPO opens on June 25 and closes on June 27. The anchor book will be available on June 24.
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Price Band: The shares are priced between Rs 267 and Rs 281.
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Minimum Investment: Investors must apply for a minimum of 53 equity shares, with multiples thereof.
Key Points for Investors
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Structure of the IPO: According to the red herring prospectus (RHP), the IPO consists of a fresh issuance of equity shares worth Rs 1,000 crore and an Offer-for-Sale (OFS) of shares amounting to Rs 500 crore.
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Promoters' Participation: Promoters Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria will be selling shares as part of the OFS.
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Book Running Lead Managers: ICICI Securities Ltd, Nuvama Wealth Management Ltd, and ITI Capital Ltd are managing the book running for the IPO.
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Listing: The equity shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
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Use of Proceeds: From the fresh issue, Rs 720 crore will be allocated for debt repayment, with the remainder designated for general corporate purposes. Proceeds from the OFS will benefit the selling shareholders.
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Price Band: The shares are priced between Rs 267-281 each.
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Minimum Investment: Investors can apply for a minimum of 53 equity shares and in multiples thereafter.
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Prominent Brands: Allied Blenders and Distillers offers a diverse portfolio of IMFL, including whisky, brandy, rum, vodka, and gin. Its flagship brand, Officer's Choice Whisky, is one of the world’s best-selling whisky brands.
Company Overview
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Background: Incorporated in 2008, ABD is a prominent IMFL company offering a diverse range of products including whisky, brandy, rum, vodka, and gin. They also market packaged drinking water under brands like Officer's Choice and Sterling Reserve.
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IPO Size and Allocation: The total IPO size is Rs 1,500 crore, comprising a fresh share sale of Rs 1,000 crore and an OFS of Rs 500 crore by promoters. Shares worth Rs 3 crore are reserved for eligible employees, who will receive a Rs 26 per share discount. The issue is divided with 50% reserved for qualified institutional bidders (QIBs), 15% for non-institutional investors, and 35% for retail investors.
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Global Presence: As of December 31, 2021, ABD's products were exported to 22 international markets, including regions in the Middle East, North and South America, Africa, Asia, and Europe. Officer's Choice Whisky, launched in 1988, is among the world's best-selling whisky brands.
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Operational Capacity: ABD operates a distillery in Rangapur, Telangana, covering 74.95 acres with a built-up area exceeding 25,000 square meters. The facility boasts an in-house distillation capacity of 54.75 million liters of extra neutral alcohol (ENA) annually, with extensive bottling capabilities across India.
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Financial Performance: For the nine months ending December 31, 2023, ABD reported a net profit of Rs 4.23 crore on a revenue of Rs 5,914.98 crore. For the financial year 2022-23, the company posted a net profit of Rs 1.60 crore on a revenue of Rs 7,116.75 crore. The company’s total debt was approximately Rs 808 crore as of December 2023.
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Market Position: With a market share exceeding 8% in the IMFL sector by sales volume in fiscal 2023, ABD is a key player in manufacturing, marketing, and selling alcoholic beverages in India and internationally. Its product portfolio includes well-known brands like Officer's Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka.
ABD’s IPO is poised to attract significant interest from investors, given its strategic use of proceeds, strong market presence, and extensive operational capacity.
With inputs from agencies
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