 "Imperial Blue deal: Tilaknagar seeks ₹2,000 crore debt from foreign banks")
Tilaknagar Industries, known for its Mansion House brandy, is working with major global banks to raise fresh debt as it moves ahead with one of India’s largest recent liquor deals, The Economic Times reported.
The company is in talks with Standard Chartered, JP Morgan, and Nomura to raise about ₹2,000 crore in local-currency debt to part-finance its ₹4,150 crore purchase of the Imperial Blue whisky brand from Pernod Ricard SA, the news report said.
Debt pricing and structure
• The debt is expected to carry an interest rate between 11 per cent and 12 per cent
• Avendus Capital is arranging the financing
• Planned debt will follow a ₹2,296 crore equity and warrant sale earlier this year at ₹382 per share, with participation from promoters and existing investors
• Tilaknagar initially considered higher-cost credit fund loans
• After raising equity, the company sought cheaper financing from foreign banks instead
Deal details
* The Imperial Blue acquisition is being executed as a slump sale
* It values the business at ₹4,150 crore, including:
* ₹700 crore in normalised working capital
* ₹282 crore in deferred consideration, payable in FY30
* The deal covers Imperial Blue and related brands and assets in India
Tilaknagar’s turnaround story
Tilaknagar Industries underwent a debt restructuring with Edelweiss ARC in 2020. It became net debt-free in September 2024, supported by:
• A 10-year manufacturing pact with Pernod Ricard in Maharashtra
• Multiple capital raises since 2021, totalling over ₹310 crore
• The Edelweiss ARC repayment was funded using cash reserves and a term loan from Kotak Mahindra Bank
Recent investment in craft spirits
Earlier this month, Tilaknagar invested ₹10.66 crore in Spaceman Spirits Lab (SSL), the maker of premium craft spirits. This includes:
• ₹9.15 crore as part of a previously agreed ₹13.15 crore investment under a September 2024 deal
• ₹1.51 crore to acquire shares from early SSL shareholders
• With this, Tilaknagar’s stake in SSL rises from 12.98 per cent to 21.36 per cent on a fully diluted basis.