Allied Blenders and Distillers Get SEBI Approval For IPO Worth Rs.1,500 Cr

Allied Blenders & Distillers, popularly known as ABD, is an Indian-made foreign liquor company, headquartered in Mumbai, India. It is a major distributor of whiskey, rum, vodka, brandy and other spirits, and exports to 22 countries around the world. The company has received final nod from the Securities and Exchange Board of India for its Rs.1500 crore IPO.

About The Company

The company was established in 1988, Its Officer’s Choice Whisky has captured an impressive 11.8% market share in the Indian whisky market by Fiscal 2023. The company has diversified its portfolio across different segments, transitioning its focus from mass premium whisky to premiumization. 

This strategic shift is evident with the launch of brands like ICONiQ White Whisky, Srishti Whisky, and X&O Barrel Whisky. It is a major distributor of whiskey, rum, vodka, brandy and other spirits, and exports to 22 countries around the world. It has a total market share of more than 8% in the Indian-made Foreign Liquor market.

Details of the Issue

Allied Blenders & Distillers has received a final nod from the Securities and Exchange Board of India for its Rs.1500 crore IPO at a face value of Rs.2 per share. The IPO is a mix of fresh issues worth Rs.1000 crore and an OFS worth Rs.500 crore. Promoter Bina Kishore Chhabria will sell shares worth Rs 250 crore, while Resham Chhabria Jeetendra Hemdev and the promoter group Neesha Kishore Chhabria will each offload shares worth Rs 125 crore. 

The net proceeds from the IPO will be utilised to prepay or repay a portion of certain existing borrowings as scheduled and for general corporate purposes. ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited are the book-running lead managers for this issue.

Conclusion: The company had refiled its IPO papers with SEBI on January 15, 2024, The Liquor maker has received a nod from the capital markets regulator, SEBI for a Rs.1500 crore IPO issue comprising of both a fresh issue worth Rs.1000 crore and Offer for sale worth Rs.500 crores and will be joining other liquor maker stocks like United Spirits, Radico Khaitan, Tilaknagar Industries and more.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.