Allied Blenders IPO: Officer's Choice whisky maker files draft papers for Rs 2,000 crore offer

Allied Blenders and Distillers Ltd has filed preliminary papers with capital markets regulator SEBI to raise more than Rs 2,000 crore via an initial public offer (IPO).

New Delhi: Officer's Choice whisky maker Allied Blenders and Distillers Ltd has filed preliminary papers with capital markets regulator SEBI with the aim to raise more than Rs 2,000 crore via an initial public offer (IPO). According to the Draft Red Herring Prospectus (DRHP), the IPO consists of a fresh issue of equity shares worth Rs 1,000 crore and an Offer For Sale (OFS) worth Rs 1,000 crore by the promoter and promoter group entity. 

Bina Kishore Chhabria will sell shares worth up to Rs 500 crore as part of the OFS, while Resham Chhabria, Jeetendra Hemdev, and Neesha Kishore Chhabria will sell shares worth up to Rs 250 crore each. Bina currently owns 52.2 percent of the company, while Neesha owns 19.96 percent and Resham owns 24.05 percent. (ALSO READ: 

In addition to the IPO, the liquor manufacturer could consider a pre-IPO placement of equity shares aggregating up to Rs 200 crore, according to the DRHP. However, if such placement is undertaken, the company could reduce the size of the fresh issue. 

The company plans to use the proceeds from the fresh issue for payment of debt and for general corporate purpose. (Burger King employee who didn't take a single leave in 27 years get Rs 1.5 crore donation) 

As of March 31, the company's product portfolio included ten brands of Indian-Made Foreign Liquor (IMFL) in the categories of whisky, brandy, rum, and vodka. Officer's Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka are some of the company's major brands.

The company sold 37.32 million, 33.23 million, 25.52 million, and 20.66 million cases of IMFL in the country in fiscal 2019, 2020, and 2021, and in the nine months ended December 31, 2021, respectively. In fiscal 2021, it had an overall market share of 8.2 percent in the IMFL market by sales volume.

ICICI Securities, Axis Capital, JM Financial, Kotak Mahindra Capital Company, and Equirus Capital have been appointed to manage the company's IPO. 

-- With PTI inputs.