Allied Blenders and Distillers, a prominent liquor maker, has revised the preliminary papers submitted to the capital market regulator, aiming to raise Rs 1,500 crore through its initial public offering (IPO). This adjusted figure is a reduction from the initially planned Rs 2,000 crore.
Key Highlights of Allied Blenders and Distillers’ Revised IPO Plans
- Allied Blenders and Distillers revise IPO size to Rs 1,500 crore from the initial Rs 2,000 crore.
- IPO includes Rs 1,000 crore fresh shares and Rs 500 crore offer-for-sale (OFS) by promoters.
- Promoters to sell Rs 250 crore (Bina Kishore Chhabria), Rs 125 crore (Resham Chhabria Jeetendra Hemdev), and Rs 125 crore (Neesha Kishore Chhabria) in OFS.
- OFS size reduced to Rs 500 crore, down from the initially proposed Rs 1,000 crore.
- Plans to utilise Rs 720 crore of IPO proceeds for debt repayment, with the rest for general corporate purposes.
- India’s third-largest IMFL company with 8.2% market share; major revenue from the whisky segment.
- May raise Rs 200 crore through a preferential issue or other methods before filing red herring prospectus, impacting fresh issue size.
- ICICI Securities, Nuvama Wealth Management, and ITI Capital are the appointed lead managers.
Revised Allied Blenders and Distillers IPO Structure
The IPO structure now comprises a combination of fresh issuance of shares amounting to Rs 1,000 crore and an offer-for-sale (OFS) of shares worth Rs 500 crore by the promoters. Within the OFS, promoter Bina Kishore Chhabria intends to sell Rs 250 crore worth of shares, while the other promoter, Resham Chhabria Jeetendra Hemdev, plans to offload shares worth Rs 125 crore. Neesha Kishore Chhabria, also a part of the promoter group, aims to sell Rs 125 crore of shares in the OFS.
Allied Blenders and Distillers IPO Date
The exact date of Allied Blenders and Distillers’ IPO has not been released yet. Investors should stay updated and refer to official announcements for their upcoming plans.
Allied Blenders and Distillers IPO Allotment
Details regarding the allotment of Allied Blenders and Distillers’ IPO shares not provided in the article. Interested participants are encouraged to check official channels, such as the company’s website, for their next official statement about the revised IPO plans.
Reduction in OFS Size
The size of the offer-for-sale (OFS) has been halved from the initially proposed Rs 1,000 crore to the current Rs 500 crore. This adjustment follows a decision by all three promoters to lower their respective OFS portions.
Background and Previous Filings
The Mumbai-based liquor firm had initially submitted draft IPO papers in June 2022, targeting a fundraising of Rs 2,000 crore. Although the Securities and Exchange Board of India (Sebi) approved the IPO in December 2022, the company did not proceed despite favorable market conditions.
Possibility of Pre-IPO Placement
Considering strategic financial decisions, India’s third-largest Indian-made foreign liquor (IMFL) company is contemplating raising Rs 200 crore through a preferential issue or other methods before filing the RHP- red herring prospectus with the Registrar of Companies for a pre-IPO placement. Any funds raised through pre-IPO placement will result in a corresponding reduction in the fresh issue size.
Product Portfolio and Revenue Breakdown
As of August 2023, Allied Blenders and Distillers boasted a product portfolio consisting of 17 brands of IMFL, spanning whisky, brandy, rum, and vodka. The whisky segment alone contributed 97.36 percent to revenue from operations in FY23. With a market share of 8.2 percent in the IMFL space by sales volumes in FY23, the company aims to utilise Rs 720 crore of the net fresh issue proceeds for debt repayment, with the remainder allocated to general corporate purposes.
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Debt Reduction and Market Participation
The company, which owns renowned brands like Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky, is set to significantly reduce its total debt of Rs 808.12 crore as of December 2023. The market share of 8.2 percent in the IMFL space positions Allied Blenders and Distillers for strategic growth. ICICI Securities, Nuvama Wealth Management, and ITI Capital serve as the book-running lead managers on the issue.
Conclusion
Allied Blenders and Distillers’ decision to adjust its IPO plans shows changes happening in India’s economy. The smaller IPO size, now Rs 1,500 Cr, creates a new chance for investors to explore. As the third-largest IMFL company in India adapts to these shifts, it opens possibilities for growth and financial adjustments, affecting its debts and role in the market. Indian investors, especially those interested in the liquor industry, should keep an eye on these changes and think about how they might impact their investment plans.
Source- www.moneycontrol.com
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