Officer's Choice Maker Allied Blenders Announces Rs 1,500-cr IPO This June

Allied Blenders and Distillers Ltd, known for producing Officers Choice Whisky, is gearing up for a significant financial move with its Rs 1,500 crore initial public offering (IPO) set to open on June 25. This event marks a pivotal moment for the company as it seeks to expand its financial horizons. The IPO will close on June 27, with a special bidding process for anchor investors scheduled for June 24, as detailed in the red herring prospectus (RHP).

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The IPO consists of a fresh issuance of equity shares amounting to Rs 1,000 crore alongside an Offer-for-Sale (OFS) of Rs 500 crore by the promoters. Notably, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria are among the promoters participating in the OFS. The company has earmarked Rs 720 crore from the fresh issue proceeds for debt repayment, with the remainder allocated for general corporate purposes. As of December 2023, Allied Blenders and Distillers reported a total debt of approximately Rs 808 crore on its books.

Having filed preliminary IPO papers with the Securities and Exchange Board of India (Sebi) in January, the company received approval in May to proceed with the public issue. Allied Blenders and Distillers boasts a market share exceeding 8 per cent in the Indian-Made Foreign Liquor (IMFL) market by sales volumes for the fiscal year 2023. The company's operations encompass the manufacturing, marketing, and sale of alcoholic beverages both within India and internationally.

The firm's diverse product range includes several brands across whisky, brandy, rum, and vodka categories. Prominent brands under its umbrella include Officers Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka. ICICI Securities Ltd, Nuvama Wealth Management Ltd, and ITI Capital Ltd are serving as the book running lead managers for the IPO. Furthermore, plans are in place for the equity shares of Allied Blenders and Distillers to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

This IPO represents a strategic step for Allied Blenders and Distillers as it seeks to strengthen its financial standing and continue its growth trajectory in the competitive IMFL market. With a comprehensive portfolio of popular brands and a significant market share, the company is well-positioned to leverage this public offering for future expansion and debt reduction efforts.