Mumbai-based Allied Blenders and Distillers (ABD), the largest Indian-owned foreign liquor (IMFL) company, has filed its draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India. India (SEBI) will raise around Rs 2,000 crore through an initial public offering (IPO). The issue with a face value of Rs 2 per equity share will consist of both a fresh issue and an offer-for-sale (OFS).
Allied Blenders & Distillers is the third largest IMFL company in India in terms of annual sales volume between the financial years 2013-14 and 2020-21.
The issue will include a fresh issue of equity shares of up to Rs 1,000 crore and an offer-for-sale (OFS) of Rs 1,000 crore by the promoter and selling shareholders – Bina Kishore Chhabria up to Rs 500 crore, Resham Chhabria up to Rs 250 crore and Jeetendra crore by Hemdev and up to Rs 250 crore by Neesha Kishore Chhabria. The offer also includes reservation for membership by eligible employees.
The offer is being made through a book building process wherein not more than 50 per cent of the offer will be available for allocation to eligible institutional buyers, at least 15 per cent of the offer will be available for allotment to non-institutional bidders and retail individual bidders. At least 35 per cent of the proposal shall be available for allotment to the
The Company may, in consultation with the lead bankers of the issue, consider preferential issue of equity shares or any other mode up to Rs.200 crore. If such placement is completed, the size of the new issue will be reduced.
Income from its new issuance of Rs. 708.98 crore will be used for prepayment or scheduled repayment of a part of certain outstanding borrowings and balance amount for general corporate purposes.
The Mumbai-based company is one of only four spirits companies in India with a pan-India sales and distribution footprint, and a leading exporter of IMFL in terms of annual sales volume between fiscal 2019 and fiscal 2021 with an estimated peak share Is. 20 percent in FY 2021.
It began its journey in 1988 with the launch of flagship brand Officers’ Choice Whiskey, which forayed into the premium whiskey segment in a big way.
From 2016 to 2019, Officers’ Choice Whiskey was one of the best-selling whiskey brands globally in terms of annual sales volume. Over the years, ABD has expanded and introduced products across various categories and segments and established market leadership in the alcoholic beverages market in India with a market share of 8.2 percent in the IMFL market in FY 2021. is the quantity.
Its main competitors are United Spirits Limited, Pernod Ricard India Private Limited and Radico Khaitan Limited.
As of March 31, 2022, their product portfolio consisted of 10 leading IMFL brands in Whisky, Brandy, Rum and Vodka. According to the Technopak report cited in its DRHP, ABDs brands including Officers’ Choice Whiskey, Sterling Reserve and Officers’ Choice Blue are ‘millionaire brands’ or brands that have sold one million 9-litre cases in a year.
In addition to alcohol, ABD also sells packaged drinking water under the Officers Choice, Officers Choice Blue and Sterling Reserve brands and exports its products internationally to 22 countries, including countries in North and South America, Africa, Asia and Europe. Huh.
The distribution of alcoholic beverages is heavily controlled by the state government – both at the wholesale and retail level. There is a high entry barrier for new players. The sales and distribution of ABD is spread over 25 states and union territories. Its products are sold across 64,000 outlets as specified in the DRHP.
ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited and Equirus Capital Private Limited are the Book Running Lead Managers and Link Intime India Private Limited is the Registrar of Offers. The equity shares are proposed to be listed on BSE and NSE.
Financial Position of Allied Blenders and Distillers
ABD’s revenue from operations stood at Rs 6,378.78 crore and profit after tax at Rs 2.51 crore for the financial year 2020-21. For the nine months ended December 2021, revenue from operations stood at Rs 5,444.98 crore and profit after tax at Rs 3.30 crore.
For the financial year 2020-21, and in the nine months ended December 31, 2021, its revenue from export sales stood at Rs 133.55 crore and Rs 113.24 crore, respectively. IMFL is the largest segment of the Indian alco-beverages market, both in terms of volume and value. The total sales of IMFL is estimated at Rs 1.74 lakh crore in the financial year 2021-22 and is projected to reach Rs 2.4 lakh crore by the financial year 2024-25.
In terms of sales volume, the company is estimated to reach 425 cases. During the period between 2021-22 and 2024-25, IMFL’s sales value is expected to grow at a CAGR (compound annual growth rate) of 11.3 per cent and sales volume at a CAGR of 6.2 per cent.
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