Allied Blenders sets IPO price band at Rs 267-281/share
(L-R) Mr. Alok Gupta, MD, Mr. Shekhar Ramamurthy, Deputy Chairman and Mr. Ramakrishnan Ramaswamy, CFO at their IPO announcement, Mumbai |
Allied Blenders and Distillers Ltd, the maker of Officer's Choice whisky, on Thursday fixed a price band of Rs 267 to Rs 281 per share for its Rs 1,500-crore initial public offering (IPO).
The initial share-sale will open for the public subscription during June 25-27 and the bidding for anchor investors will open for a day on June 24, the company announced.
Broking firms have pegged the company's market capitalisation to Rs 7,860 crore post-issue.
The Mumbai-based company's initial share-sale comprises fresh issuance of equity shares worth Rs 1,000 crore and an Offer-for-Sale (OFS) of shares to the tune of Rs 500 crore by promoters.
As a part of the OFS, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria will sell shares.
Proceeds from the fresh issue worth Rs 720 crore will be used for the payment of debt. Besides, a portion will be used for general corporate purposes.
The total debt on the company's books was around Rs 808 crore as of December 2023.
Allied Blenders and Distillers started its journey in 1988 with the launch of flagship brand Officer's Choice Whisky which marked its entry into the mass premium whisky segment.
It is engaged in the manufacturing, marketing and sale of alcoholic beverages in India and abroad. The product portfolio of the firm comprises several brands of IMFL across whisky, brandy, rum and vodka.
Some of the major brands of the company include Officer's Choice whisky, Sterling Reserve whisky, Jolly Roger rum and Class 21 vodka.
Allied Blenders is the third largest Indian-Made Foreign Liquor (IMFL) company in India, in terms of annual sales volumes between fiscal 2014 and fiscal 2022. It is a leading exporter of IMFL, with an estimated market share of 11.8 per cent in the Indian whisky market for fiscal 2023.
As of March 31, 2023, the company's products were retailed across 79,329 outlets across 30 states and Union Territories in India.
The company said that half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 10 per cent for non-institutional investors. Further, investors can bid for 53 shares and in multiples thereof.
ICICI Securities Ltd, Nuvama Wealth Management Ltd, and ITI Capital Ltd are the book running lead managers to the issue. The equity shares of the company are proposed to be listed on the BSE and NSE.
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