Shares of Tilaknagar Industries, makers of a diverse brands of Indian Made Foreign Liquor (IMFL), are sharply higher by over 8 percent on July 21 on very high investor interest, after the company announced that the board of the company will consider fund raising on July 23, and the Bombay High Court ruled in favour of the company in a matter relating to Allied Blenders.
The fund raise will be carried out via issuance of shares, debentures, warrants, preference shares, bonds, or other instruments, Tilaknagar said, adding that the fund raise may be done in one or more tranches through the permitted routes such as a public offer, rights issue, private placement, preferential allotment, Qualified Institutional Placement (QIP), or a combination of these.
On July 18, the Bombay High Court ruled in favour of Tilaknagar Industries, issuing a pan-India restraint order on Allied Blenders & Distillers (ABD) against launching 'Mansion House' and 'Savoy Club' brands, over-turning a single-bench order that had allowed the sale in West Bengal.
On a YTD basis, the shares of Tilaknagar Industries are nearly flat, but over the last one month, they are higher by close to 20 percent.
Tilaknagar Industries has been looking to raise funds for a potential acquisition of a whisky brand Imperial Blue from French spirit major Pernod Ricard, Moneycontrol had earlier this month, citing sources. Imperial Blue is India's third-largest whiskey brand by sales, valued at about $600-650 million. Imperial Blue was launched in India in 1997. It is Pernod Ricard's second best-selling Indian whisky, behind Royal Stag, having sold 22.8 million nine-litre cases in 2023 according to the Drinks International Millionaires’ Club.
"As of now, Tilaknagar Industries is planning to fund the proposed deal via a combination of debt and equity," one of the persons familiar with the development said.
If the deal goes through, it will be the largest in India's alcoholic beverage space in over a decade, when Diageo bought United Spirits for $1.9 billion.
Tilaknagar said it is the third largest Prestige and Above IMFL player in Karnataka, where over 80% of all IMFL consumed is whisky. "We expect this trend of market share expansion to continue across all key states given our strong launch pipeline for the quarters ahead," Tilaknagar had said in May 2025.
Brandy has been the dominant category for Tilaknagar, but the IMFL maker has forayed into semi-premium whisky segment with the relaunch of Mansion House Whisky in East and Northeastern states of India, and South India. "The initial traction has been encouraging. Our mid-to-long term aim is to expand on a non-brandy portfolio through innovative launches in the growing and profitable prestige and above segment. These launches will fill up gaps in our portfolio and enable us to have a more meaningful play across the country," Tilaknagar recently said.
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