Indian-made foreign liquor (IMFL) manufacturer Allied Blenders and Distillers has refiled its papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) aiming to raise 1,500 crore. The company had initially submitted a draft red herring prospectus (DRHP) in June 2022, seeking to raise ₹2,000 crore.
The Allied Blenders and Distillers IPO includes a fresh issue of equity shares, amounting to 1,000 crore, and an offer-for-sale (OFS) totaling ₹500 crore, as detailed in the company’s latest DRHP dated January 15. The net proceeds from the IPO are earmarked for general corporate objectives and the prepayment of certain existing borrowings.
In the OFS segment, promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra Hemdev are set to sell shares valued at ₹250 crore and ₹125 crore, respectively. Another member of the promoter group, Neesha Kishore Chhabria, plans to sell shares in the OFS for ₹125 crore.
Compared to the initial DRHP, which proposed a ₹1,000 crore OFS, the size has been halved to ₹500 crore. All three promoters have equally reduced their contributions to the OFS component. The company is also considering raising an additional ₹200 crore through a preferential issue or other means before registering the red herring prospectus for a pre-IPO placement with the registrar of companies.
The book running lead managers for the Allied Blenders and Distillers IPO are ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited. The registrar to the offer is Link Intime India Private Limited.
As per the Technopak Report, the company holds the third position among Indian IMFL companies in yearly sales volumes from Fiscal 2014 to Fiscal 2022. Notably, it stands out as the largest Indian-owned IMFL company, with an anticipated 11.8% market share in the Indian whisky industry for the fiscal year 2023. Recognized for its pan-Indian sales and distribution network, the company is a significant exporter of IMFL.
