A fresh issue of ₹1,000 crore and an offer-for-sale (OFS) of ₹500 crore worth of equity shares by the promoters and other investors make up the ₹1,500 crore Allied Blenders and Distillers IPO.
The shares will be offloaded by promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra Hemdev in the OFS.
With the introduction of their flagship brand, Officer’s Choice whiskey, in 1988, Allied Blenders and Distillers entered the mainstream premium whiskey market.
It produces, promotes, and sells alcoholic drinks both domestically in India and internationally. The company’s product line includes many IMFL brands including vodka, rum, whiskey, and brandy.
Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
Allied Blenders and Distillers IPO Promoters
The promoters of the company include Kishore Rajaram Chhabria, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, Bina Chhabria Enterprises Private Limited, BKC Enterprises Private Limited, Oriental Radios Private Limited and Officer’s Choice Spirits Private Limited.
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Allied Blenders and Distillers IPO Peers
The listed counterparts of the firm are Globus Spirits Ltd (P/E of 17.26 times), Radico Khaitan Ltd (P/E of 95.87 times), and United Spirits Ltd (P/E of 73.16 times).
Allied Blenders and Distillers Business
Allied Blenders and Distillers is an Indian-made international liquor firm that was founded in 2008. The firm sells whiskey, brandy, rum, and vodka—four types of foreign liquor created in India. Furthermore, they market drinking water in packages under the Sterling Reserve, Officer’s Choice, and Officer’s Choice Blue brands.
Allied Blenders and Distillers Product Portfolio
The company’s product portfolio included 16 major IMFL brands as of December 31, 2023. Of these, 10 were whisky brands—including the flagship Officer’s Choice Whisky, Sterling Reserve Whisky, and ICONiQ White International Whisky—three were rum brands, three were brandy brands, and one was vodka.
Additionally, in January 2024, the business introduced Zoya Special Batch Premium Gin. In India, their products are available at different price ranges within different IMFL categories.
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Allied Blenders and Distillers Manufacturing Facilities
The distillery of the firm is situated in Rangapur, Telangana, and spans 74.95 acres, with a built-up area of 25,000 square meters. We have the potential to produce 600.00 lakh liters of extra neutral alcohol (ENA) annually by in-house distillation. As of December 31, 2023, the firm also has a pan-India presence throughout 22 States and Union Territories, as well as considerable bottling capabilities with an ideal blend of owned and third-party facilities.
As of December 31, 2023, the business owned and managed nine bottling units. It also had agreements with five other bottling facilities, allowing them to use the full licensed capacity. The firm has built partnerships with other bottlers over the years, and as of December 31, 2023, it has 18 non-exclusive bottling agreements under its belt, one of which included a royalty arrangement. 32 bottling facilities will have the company’s products packaged as of December 31, 2023.
Also Read: Allied Blenders and Distillers Limited gets SEBI nod for ₹1,500 crore IPO
Allied Blenders and Distillers IPO Subsidiaries
The following are the company’s eight subsidiaries:
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Allied Blenders and Distillers Industry
India is one of the world’s top economies with the fastest-growing markets for the consumption of alcoholic beverages. From a small base of 1.3 liters of pure alcohol consumed per capita in 2005 to 2.7 liters in 2010 and an estimated 3.2 liters per capita in 2023, India’s market for alcoholic beverages is one of the fastest growing in the world.
Allied Blenders and Distillers IPO key risks
- The company’s PAT Margin and profit after tax for the year/period have historically fluctuated greatly. There is no assurance that they will become better and the business will be able to make more money in the future.
- The increasing competition in the IMFL industry might put pressure on them and have a detrimental effect on their business, cash flows, prospects, operations, and financial status.
Allied Blenders and Distillers Financials
Despite the effects of COVID-19, our company has produced a strong operational cash flow throughout the years. In the nine months that ended on December 31, 2022, and December 31, 2023, as well as in Fiscal 2021, 2022, and 2023, their net cash produced from operational operations was ₹2,466.18 million, ₹1,787.60 million, ₹2,298.55 million, ₹1,729.85 million, and ₹1,439.12 million, respectively.
Furthermore, the nine months ended December 31, 2022, and December 31, 2023, as well as the fiscal years 2021, 2022, and 2023, showed our restated profit to be ₹25.08 million, ₹14.76 million, ₹16.01 million, ₹28.81 million, and ₹42.29 million, respectively.
Their net worth was ₹3,817.82 million, ₹4,040.98 million, ₹4,060.99 million, ₹4,070.84 million and ₹4,092.56 million, as of March 31, 2021, 2022 and 2023, and as of December 31, 2022 and December 31, 2023, respectively.
Lock-in of equity shares allotted to anchor investors
After the date of allocation, 50% of the equity shares allotted to anchor investors will be locked in for 30 days, and the remaining 50% will be locked in for 90 days.
Also Read: Ola Electric, Emcure Pharmaceuticals get SEBI nod for IPO launch
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 21 Jun 2024, 03:44 PM IST
