Allied Blenders and Distillers gets Sebi's approval to float Rs 1500 cr IPO

Allied Blenders and Distillers Ltd, renowned for its Officer's Choice Whisky, disclosed on May 14 that it has secured approval from the market regulator Sebi to raise Rs 1,500 crore through an Initial Public Offering (IPO).

The shares are offered at a face value of Rs 2 and is a mix of a fresh issue of equity shares valued at Rs 1,000 crore and an Offer-for-Sale (OFS) of shares worth Rs 500 crore by promoters, as outlined in the Draft Red Herring Prospectus (DRHP).

Under the OFS, shares will be sold by Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria. Having filed preliminary IPO documents with Sebi in January, Allied Blenders and Distillers Ltd received its observations on May 10, indicating the green light to proceed with the public offering.

In Sebi's terms, obtaining observations signifies approval to launch the public issue. As outlined in the draft papers, proceeds from the fresh issue, amounting to Rs 720 crore, will be allocated towards debt repayment, alongside a portion earmarked for general corporate purposes.

Allied Blenders and Distillers obtained Sebi's approval for its inaugural public offering but opted not to proceed with the launch. The company is primarily involved in the manufacturing, marketing, and distribution of alcoholic beverages within India and internationally.

Its product portfolio encompasses various brands of Indian-Made Foreign Liquor (IMFL) spanning whisky, brandy, rum, and vodka. Notable brands under its umbrella include Officer's Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka.

In its DRHP, the firm disclosed a revenue of Rs 1,216 crore in FY23, recording a jump of 77.2 per cent year on year from Rs 686 crore in FY22. Profit after tax also grew by a whopping 500 per cent to Rs 102 crore in FY23 as against Rs 17 crore in the previous year.

The company's total debt stood at approximately Rs 808 crore as of December 2023. With a market share exceeding 8 per cent in the Indian-Made Foreign Liquor (IMFL) market by sales volumes in Fiscal 2023, Allied Blenders and Distillers had previously submitted draft papers to Sebi in 2022 for a Rs 2,000 crore IPO.

Allied Blenders and Distillers, founded in Mumbai in 1988, first made its mark with Officer’s Choice Whisky in the mass premium category, capturing a substantial 11.8 per cent market share in the Indian whisky market by Fiscal 2023. 

Throughout its journey, ABD has diversified its offerings, venturing into different categories and market segments.