Around Rs 700 crore of the Rs 1,000 crore raised via fresh issue will be used to repay debt and balance Rs 300 crore of the IPO proceeds will go towards capacity expansion and brand building, Bikram Basu, VP of Marketing and Strategy at Allied Blenders & Distillers told CNBC-TV18 on November 21.
Allied Blenders and Distillers (ABD) had filed draft documents with market regulator the Securities Exchange Board of India (SEBI) to raise Rs 2,000 crore through an initial public offering (IPO), consisting of a fresh issue of Rs 1,000 crore and an offer for sale (OFS) of up to shares worth Rs 1,000 crore by promoters and shareholders.
Shares worth up to Rs 500 crore will be offloaded by Bina Kishore Chhabria, up to Rs 250 crore by Resham Chhabria Jeetndera Hemdev and up to Rs 250 crore by Neesha Kishore Chhabria, the draft red herring prospectus (DRHP) said.
Speaking to the channel, Basu also noted, “We are very strong in the mass segment with Officer’s Choice and we have done really well with our Sterling Reserve brand. The company should be back to pre-Covid revenue in the current financial year.”