The shares, with a face value of Rs 2, comprise a blend of Rs 1,000 crore worth of fresh equity shares and an Offer-for-Sale (OFS) of Rs 500 crore by promoters.
Allied Blenders and Distillers Ltd, known for Officer’s Choice Whisky, announced on May 14 that it obtained Sebi approval for a Rs 1,500 crore IPO. The shares, priced at Rs 2 face value, consist of a Rs 1,000 crore fresh equity issue and a Rs 500 crore Offer-for-Sale (OFS) by promoters, as stated in the Draft Red Herring Prospectus (DRHP).
Allied Blenders and Distillers ipo: 1500 Crore IPO Journey
Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria will sell shares under the OFS. Allied Blenders and Distillers Ltd, after filing preliminary IPO documents with Sebi in January, received observations on May 10, signaling approval to proceed with the public offering.
In Sebi’s parlance, receiving observations denotes approval for the public issue launch. As detailed in the draft papers, Rs 720 crore from the fresh issue will go towards debt repayment, with a portion designated for general corporate purposes. Allied Blenders and Distillers secured Sebi’s nod for its maiden public offering but chose not to proceed with the launch. The company mainly engages in manufacturing, marketing, and distributing alcoholic beverages domestically and globally.
Its product range includes multiple Indian-Made Foreign Liquor (IMFL) brands, covering whisky, brandy, rum, and vodka. Prominent brands in its portfolio include Officer’s Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka.
In its DRHP, the company reported a FY23 revenue of Rs 1,216 crore, surging by 77.2% year on year from Rs 686 crore in FY22. Profit after tax also skyrocketed by 500% to Rs 102 crore in FY23 compared to Rs 17 crore in the prior year. As of December 2023, the company’s total debt was approximately Rs 808 crore. With a market share exceeding 8% in the IMFL market by sales volumes in Fiscal 2023, Allied Blenders and Distillers had previously filed draft papers with Sebi in 2022 for a Rs 2,000 crore IPO.
Established in Mumbai in 1988, Allied Blenders and Distillers initially gained recognition with Officer’s Choice Whisky in the mass premium category, securing a significant 11.8% market share in the Indian whisky market by Fiscal 2023. Over time, ABD has expanded its product range, entering various categories and market segments.
You might also be interested in – SEBI plans to introduce a beta version of T+0 trade settlement on March 28
