Officer's Choice Whisky Maker Allied Blenders To Launch Rs 1,500-Crore IPO On June 25

Allied Blenders and Distillers Ltd, the renowned maker of Officer's Choice Whisky, is poised to launch its Rs 1,500 crore initial public offering (IPO) on June 25. The company has fixed a price band of Rs 267 to Rs 281 per share for its IPO. According to the red herring prospectus (RHP), the IPO will conclude on June 27, with bidding for anchor investors opening on June 24.

The IPO consists of a fresh issuance of equity shares worth Rs 1,000 crore and an Offer-for-Sale (OFS) of shares amounting to Rs 500 crore by the company's promoters. Prominent shareholders Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria will be participating in the OFS.

Broking firms have pegged the company's market capitalisation to Rs 7,860 crore post-issue.

From the proceeds of the fresh issue, Rs 720 crore will be allocated for debt repayment, with the remaining funds designated for general corporate purposes. As of December 2023, the company's total debt stood at approximately Rs 808 crore.

Having filed preliminary IPO papers with the Securities and Exchange Board of India (SEBI) in January, Allied Blenders and Distillers received approval in May to proceed with the public offering. The company holds over 8 per cent market share in the Indian-Made Foreign Liquor (IMFL) market by sales volume in fiscal year 2023, and it is engaged in the manufacturing, marketing, and sale of alcoholic beverages both domestically and internationally.

Allied Blenders and Distillers boasts a diverse portfolio of IMFL brands, including Officer's Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka.

ICICI Securities Ltd, Nuvama Wealth Management Ltd, and ITI Capital Ltd are serving as the book running lead managers for the IPO. The company's equity shares are slated to be listed on both the BSE and NSE.

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