Allied Blenders and Distillers fixes price band of Rs 267-281 a share for IPO

It will utilise Rs 720 crore out of the net fresh issue proceeds for repaying debt, and the remaining for general corporate purposes.

Officer’s Choice whisky maker Allied Blenders and Distillers Ltd has fixed price band of Rs267-281 a share for its initial public offering and will open for subscription on June 25.

The Rs 1,500-crore maiden public issue anchor book opens on June 24 and the issue will close on June 27. The basis of allotment will be on June 28, refunds will be made on July 1 and the firm will list on exchanges on July 2.

The IPO is a mix of fresh issuance of equity shares worth Rs 1,000 crore and an offer-for-sale of shares worth Rs 500 crore by the existing shareholders.

Promoters Bina Kishore Chhabria, and Resham Chhabria Jeetendra Hemdev are the selling shareholders in the offer-for-sale, offloading Rs 375 crore and Rs 125 crore worth of shares respectively.

It will utilise Rs 720 crore out of the net fresh issue proceeds for repaying debt, and the remaining for general corporate purposes.

Allied Blenders, which is one of the largest Indian-made foreign liquor (IMFL) companies, offers product portfolio of 16 brands across whisky, brandy, rum and vodka, including Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue and ICONiQ Whisky.

It had an estimated market share (in terms of sales volume) of 11.8 percent in the Indian whisky market for fiscal 2023. Whisky contributed the maximum to its revenue at 97.36 percent in FY23 and 96.95 percent in the months ended December 2023.

The Mumbai-based liquor maker with pan-India distribution network has recorded net profit at Rs 1.6 crore for the fiscal year ended March 2023, up 8.5 percent over previous year. Revenue (excluding excise duty) from operations jumped 17.2 percent to Rs 3,146.6 crore during the same period.

For the nine months ended December 2023, net profit grew by 46.8 percent on-year to Rs 4.2 crore and revenue increased by 7.8 percent to Rs 2,560.3 crore compared to year-ago period.

ICICI Securities, Nuvama Wealth Management, and ITI Capital are the merchant bankers on the issue. Link Intime India is the registrar.