Allied Blenders and Distillers Ltd, the maker of Officer's Choice whisky, has filed draft documents with market regulator the Securities Exchange Board of India to raise Rs 2,000 crore through an initial public offering (IPO).
The IPO will consist 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.
Bina holds a 52.20 percent stake in the firm, Resham 24.05 percent stake and Neesha has a 19.96 percent holding in the firm.
The proceeds from the issue will be used to repay debt. As of December 2021, the firm had total outstanding borrowings of Rs 926.89 crore.
"We believe that the prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by us will help reduce our outstanding indebtedness and debt servicing costs, assist us in maintaining a favourable debt to equity ratio and enable utilisation of our internal accruals for further investment in business growth and expansion,” the firm said in DRHP.
ICICI Securities, Axis Capital, JM Financial, Kotak Mahindra Capital and Equirus Capital are the lead managers to the issue.
Allied Blenders and Distillers is the third-largest Indian made foreign liquor (IMFL) firm with its flagship brand Officer's Choice whisky, which is among the top-selling brands globally.
As of March 2022, its product portfolio comprised 10 major brands of IMFL across whisky, brandy, rum and vodka. Some of its brands such as Officer’s Choice Whisky, Sterling Reserve and Officer’s Choice Blue, are the so-called Millionaire Brands, or brands that have sold over a million 9-litre cases in a year, the firm said.
The company also sells packaged drinking water under Officer’s Choice, Officer’s Choice Blue and Sterling Reserve brands.
As of December 2021, the firm had sales across 30 states and union territories and exported to 22 markets, in West Asia, North and South Americas, Africa, Asia and Europe.In FY21, its total revenue stood at Rs 6,378.78 crore, down from Rs 8,119.07 crore a year ago. Net profit for the year was at Rs 2.51 crore against Rs 12.97 crore in the previous year. EBITDA margin for the period improved to 9.07 percent from 8.35 percent a year earlier.