Mr. Alok Gupta, MD of Allied Blenders and Distillers Limited (ABD) addressing to media at their IPO announcement, Mumbai
(L-R) Mr. Alok Gupta, MD, Mr. Shekhar Ramamurthy, Deputy Chairman and Mr. Ramakrishnan Ramaswamy, CFO at their IPO announcement, Mumbai
- Allied Blenders and Distillers Ltd. sets its IPO price band at Rs. 267–281, aiming to raise Rs. 1,500 crore. The public offering, managed by ICICI Securities, Nuvama Wealth, and ITI Capital, opens on 25th June and closes on 27th June, with subscriptions starting at a minimum of 53 shares.
- Allied Blenders and Distillers IPO Opens for subscription on 25th June and closes on 27th June. The anchor portion of the offer will open on 24th June. The minimum lot size for bidding will be 53 shares, with further bids to be made in multiples, according to the company.
MUMBAI, 20 JUNE, 2024 (GPN): Allied Blenders and Distillers is the largest Indian-owned Indian-made foreign liquor (“IMFL”) company with a product range which includes five main categories, i.e., whisky, brandy, rum, vodka and gin, has fixed the price band of Rs. 267/- to Rs 281/- per Equity Share of face value Rs. 2/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Tuesday, June 25, 2024, for subscription and close on Thursday, June 27, 2024. Investors can bid fora minimum of 53 Equity Shares and in multiples of 53 Equity Shares thereafter.
The IPO consists of fresh issue of up to INR 1,000 crore and an offer for sale (OFS) of up to INR 500 crore by Promoters.
The proceeds from the fresh issue will be utilised to the extent of Rs 720 crore for prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by the company and general corporate purposes.
The Mumbai-based company is the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2022 and also one of the only four spirits companies in India with a Pan-India sales and distribution footprint, and is a leading exporter of IMFL, with an estimated market share of 11.8% in the Indian Whisky market for fiscal 2023. The Company started its journey in 1988 with the launch of flagship brand, Officer’s Choice Whisky which marked their entry into the mass premium whisky segment.
From 2016 to 2019, Officer’s Choice Whisky was among the top-selling whisky brands globally in terms of annual sales volumes. Over the years, ABD has expanded and introduced products across various categories and segments.
As of December 31, 2023, their product portfolio comprised 16 major brands of IMFL across whisky, brandy, rum, and vodka. ABDs brands which includes Officer’s Choice Whisky, Sterling Reserve, ICONiQ Whisky and Officer’s Choice Blue, are ‘Millionaire Brands’ or brands have sold over a million 9-liter cases in one year.
As of March 31, 2023, their products were retailed across 79,329 retail outlets across 30 States and Union Territories in India.
In Fiscal 2023, the sale of whisky accounted for 63% of IMFL sales by volume and 68% by value in India. while the mass premium segment constituted approximately 37% of the total IMFL market in India in Fiscal 2022. Its Officer’s Choice Whisky is the market leader in the mass premium segment with a market share of 20.9% in terms of annual sales volumes in Fiscal 2023.
The Prestige segment of the company is the largest segment for the whisky market contributing 51% of the whisky market by volume in India at 124 million cases in Fiscal 2023, showing consistent growth over the years and projected to reach 192 million cases contributing 54% by Fiscal Further the introduction of new products within the premium, semi-premium and deluxe segments to strengthen its presence in other categories.
ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital 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.
The Grey Market Premium or GMP of the Allied Blenders and Distillers is currently Rs 50, which means shares are trading at the upper band issue price of Rs 331 with premium in the grey market.Allied Blenders and Distillers are among the largest IMFL companies in India with a diversified and contemporary product portfolio of comprised 17 major brands of IMFL with 10 brands of whisky that include its flagship Officer’s Choice Whisky, Sterling Reserve Whisky and ICONiQ White International Whisky, three brands of rum, three brands of brandy and one brand of vodka.
The company intends to continue to focus on reducing operating costs and improving utilization by investing in the modernization of manufacturing facilities with relevant technologies and production methods. This will increase their capacity, improve efficiency and operating performance and reduce the need for future capital expenditure of the company.
To expand its customer base and enrich the product portfolio, companies intend to selectively pursue strategic acquisitions and investments and other strategic alliance partnerships that are complementary to our growth strategy. This will also add value to our existing portfolio; hence the company is looking to acquire the license of third-party brands in India and overseas.
The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the net offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
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