Allied Blenders and Distillers Secures SEBI Nod for ₹1,500 Crore IPO

Allied Blenders and Distillers Ltd, the Indian maker of Officer's Choice Whisky, has received approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth ₹1,500 crore, marking a significant milestone in the rapidly growing Indian alcoholic beverage market. The IPO will comprise a fresh issue of equity shares and an offer for sale by promoters, with proceeds to be used for debt repayment and general corporate purposes." This description focuses on the primary topic of the article (Allied Blenders and Distillers' IPO approval), the main entity (the company), the context (the Indian alcoholic beverage market), and the significant actions and consequences (IPO approval, debt repayment, and corporate purposes). The description also provides objective and relevant details that will help an AI generate an accurate visual representation of the article's content, such as the company's logo, whisky bottles, or a graph showing the growth of the Indian alcoholic beverage market.

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Aqsa Younas Rana
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Allied Blenders and Distillers Secures SEBI Nod for ₹1,500 Crore IPO

Allied Blenders and Distillers Secures SEBI Nod for ₹1,500 Crore IPO

Allied Blenders and Distillers Ltd, the maker of Officer's Choice Whisky, has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) worth ₹1,500 crore. The Mumbai-based company, established in 1988, filed its preliminary IPO papers in January and obtained SEBI's observations on May 10, 2024.

Why this matters: This IPO approval marks a significant milestone in the Indian alcoholic beverage market, which is growing rapidly due to rising incomes and increasing awareness of western tastes and trends. The success of Allied Blenders and Distillers' IPO could have a positive impact on the industry as a whole, attracting more investments and driving growth.

The IPO comprises a fresh issue of equity shares worth ₹1,000 crore and an offer for sale (OFS) of shares worth ₹500 crore by promoters. The OFS includes ₹250 crore by Bina Kishore Chhabria, ₹125 crore by Resham Chhabria Jeetendra Hemdev, and ₹125 crore by Neesha Kishore Chhabria. The offer also includes a reservation for subscription by eligible employees.

The proceeds from the fresh issue, amounting to ₹720 crore, will be utilized for the prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and for general corporate purposes. Allied Blenders and Distillers' total debt stood at around ₹808 crore as of December 2023.

Allied Blenders and Distillers is a leading exporter of Indian-made foreign liquor (IMFL) and has a strong position in the Indian whisky market, with a market share of 11.8% in Fiscal 2023. The company has expanded its product portfolio across various categories and segments, including the launch of successful brands like ICONiQ White Whisky, Srishti Whisky, and X&O Barrel Whisky.

The company has achieved remarkable success with its new brand, ICONiQ White Whisky, reaching 2 million cases sold in its first year since launch. Additionally, it introduced Zoya Special Batch Premium Gin in January 2024, further expanding its product offerings beyond whisky.

India is one of the fastest-growing alcoholic beverage markets in the world, with IMFL contributing close to 72% in value to the overall market in Fiscal 2023. The industry's growth is driven by rising incomes, growing urbanization, and increasing awareness of western tastes and trends, leading to premiumization.

The equity shares of Allied Blenders and Distillers are proposed to be listed on the BSE and NSE. ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited are the book-running lead managers, while Link Intime India Private Limited is the registrar of the offer. With SEBI's approval in hand, Allied Blenders and Distillers is poised to move forward with its IPO plans, marking a significant milestone for the company in the rapidly evolving Indian alcoholic beverage market.

Key Takeaways

  • Allied Blenders gets SEBI nod for ₹1,500 crore IPO.
  • IPO comprises ₹1,000 crore fresh issue and ₹500 crore OFS.
  • Proceeds to be used for debt repayment and general corporate purposes.
  • Company has 11.8% market share in Indian whisky market.
  • IPO to be listed on BSE and NSE, with ICICI Securities as lead manager.