Allied Blenders and Distillers IPO opens June 25 to raise Rs 1,500 crore. Includes fresh shares and OFS. Price band announced June 20. Key investment opportunity!Table of Contents
Allied Blenders and Distillers, the well-known producer of Officer’s Choice whisky, is gearing up for its Rs 1,500-crore initial public offering (IPO) debut on June 25. Make a note, as the eagerly awaited price range for this offering will be disclosed on June 20. Prospective investors should be aware that the subscription window will close on June 27, while the anchor book will be available for a single day on June 24.
A Mix of New Shares and Offer-for-Sale
The IPO includes two major parts: a new issuance of equity shares worth Rs 1,000 crore and an offer-for-sale (OFS) of shares valued at Rs 500 crore by current shareholders. Specifically, promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra Hemdev will be selling shares worth Rs 375 crore and Rs 125 crore, respectively, through the OFS.
Employee Allocation and Public Offering
In an inclusive approach, Allied Blenders has allocated equity shares worth Rs 3 crore for its employees. After this reservation, the remainder forms the net issue available to the public.
Use of Proceeds: Allied Blenders and Distillers IPO
From the new share issuance proceeds, Rs 720 crore will be directed towards debt repayment. The remainder will be used for general corporate purposes, enhancing the company’s financial flexibility.
Varied Portfolio and Market Standing
As one of the largest Indian-made foreign liquor (IMFL) companies, Allied Blenders boasts a robust assortment of 16 brands spanning whisky, brandy, rum, and vodka. Notable brands include Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky. The company held an 11.8 percent market share in the Indian whisky sector in fiscal 2023, with whisky making up a substantial 97.36 percent of its revenue in FY23 and 96.95 percent for the nine-month period ending December 2023.
Financial Performance
Fiscal Year 2023:
- Net Profit: Rs 1.6 crore (an 8.5% rise over the previous year)
- Revenue (excluding excise duty): Rs 3,146.6 crore (up 17.2%)
Nine Months Ending December 2023:
- Net Profit: Rs 4.2 crore (a 46.8% increase year-on-year)
- Revenue: Rs 2,560.3 crore (a 7.8% rise compared to the previous period)
Merchant Bankers and Registrar
ICICI Securities, Nuvama Wealth Management, and ITI Capital are managing the Allied Blenders and Distillers IPO as the merchant bankers, while Link Intime India is serving as the registrar.
Key Dates and Financial Highlights
| Event | Date |
|---|---|
| Price Band Announcement | June 20 |
| Anchor Book Opening | June 24 |
| IPO Opening | June 25 |
| IPO Closing | June 27 |
Financial Snapshot (in Rs crore)
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 2,741.39 | 2,487.70 | 2,248.35 | 2,298.57 |
| Revenue | 5,914.98 | 7,116.75 | 7,208.17 | 6,397.81 |
| Profit After Tax | 4.23 | 1.60 | 1.48 | 2.51 |
| Net Worth | 409.26 | 406.10 | 404.10 | 381.78 |
| Reserves and Surplus | 360.43 | 357.28 | 356.99 | 327.85 |
| Total Borrowing | 798.11 | 780.82 | 846.91 | 954.74 |
| Amount in ₹ Crore | ||||
Grasping the Offering
The combination of new equity and OFS ensures both the influx of fresh capital and the opportunity for existing shareholders to partially exit. For retail investors and financial enthusiasts alike, this IPO presents a unique chance to invest in a leading entity within the burgeoning Indian whisky market.
Common Questions About IPOs
What is an IPO?
An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time to raise capital.
Why should you consider investing in an IPO?
Investing in an IPO allows individuals to own a stake in a potentially growing company from its early public stages, which can lead to significant returns if the company performs well.
How can you invest in an IPO?
You can invest in an IPO through your brokerage account. Ensure your account is funded and check the specific steps your broker requires for IPO applications.
With its strategic debt repayment plans, strong market presence, and promising financial growth, Allied Blenders and Distillers’ IPO is a noteworthy event. The offering is not just a financial milestone for the company but also an investment opportunity for the public. Keep an eye on the key dates and prepare to delve into the world of investments with this upcoming IPO.
Stay informed and make wise investment decisions!
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