Allied Blenders and Distillers IPO

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25th – 27th Jun 2024
02 Jul 2024
₹267 – ₹281
53 shares (₹14893)
1500cr

Schedule

Issue open date 25 Jun 2024
Issue close date 27 Jun 2024
UPI mandate deadline 27 Jun 2024 (5 PM)
Allotment finalization 28 Jun 2024
Refund initiation 01 Jul 2024
Share credit 01 Jul 2024
Listing date 02 Jul 2024
Mandate end date 12 Jul 2024
Lock-in end date for anchor investors (50%) 27 Jul 2024
Lock-in end date for anchor investors (remaining) 25 Sep 2024

About

Incorporated in 2008, Allied Blenders and Distillers is an Indian-owned Indian-made foreign liquor (IMFL) company. Its flagship brand, Officer’s Choice Whisky was launched in 1988 therefore making an entry into the mass premium whisky segment. It is one of the only four spirits companies in India with a pan-India sales and distribution footprint, a leading exporter of IMFL, and had an estimated market share (in terms of sales volume) of 11.8% in the Indian whisky market for Fiscal 2023.

As of December 31, 2023, The company’s product portfolio comprised 16 major brands of IMFL across whisky, brandy, rum, and vodka, and has exported its products to 14 international markets, including countries in the Middle East, North America, Africa, Asia, and Europe. The company owns and operates its distillery located in Rangapur, Telangana which is spread over 74.95 acres with a built-up area of over 25,000 square meters. Its in-house distillation capacity of extra neutral alcohol (ENA), the key material used in the manufacture of its products, is 600.00 lakh liters per year.

Funds Raised in the IPO Amount
Overall ₹1500 crores
Fresh Issue ₹1000 crores
Offer for sale ₹500 crores

According to the Technopak Report:

  • The company is the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2022.
  • Certain brands of the company, such as Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky, are ‘Millionaire Brands’ or brands that have sold over a million 9-litre cases in one year.
  • As of March 31, 2023, The company’s products were retailed across 79,329 retail outlets across 30 States and Union Territories in India.

Financial Snapshot

Financial Year Ended March 2021 March 2022 March 2023 December 2023
Total Assets 2,298.57 2,248.35 2,487.70 2,741.39
Revenue 6,397.81 7,208.17 7,116.75 5,914.98
Profit After Tax 2.51 1.48 1.60 4.23
EPS 0.10 0.06 0.07 0.17

*All figures except EPS are in ₹ Crores

Risk factors

  • Rising competition: The intensifying competition within the IMFL industry, with key competitors including United Spirits Limited, Pernod Ricard India Private Limited, Radico Khaitan Limited, John Distilleries, Tilak Nagar Industries, Jagatjit Industries, and Globus Spirits, may exert pressures that could negatively impact the business, prospects, operational results, cash flows, and financial standing.
  • Regulatory compliance: The company’s operations are heavily regulated by both Central and State authorities. Changes in the regulatory landscape could lead to additional costs or constraints on business activities. Moreover, the sale of alcohol is restricted in certain states. If any state where the company operates enforces prohibition or if more states restrict the consumption and sale of alcoholic beverages, or impose other limitations on alcohol production or sales, it could significantly harm the business and financial outlook.
  • Reliance on Officer’s Choice brand: The company’s sales are heavily reliant on whisky products under the Officer’s Choice brand, accounting for 83.76%, 82.29%, 75.85%, 76.78%, and 73.02% of total sales volume in Fiscal years 2021, 2022, and 2023, as well as the nine months ending on December 31, 2022, and December 31, 2023. Failure to sustain or enhance the popularity of the Officer’s Choice brand may have adverse effects on business prospects and financial performance.

Note:

  • The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
  • The allotment status will be available by June 29, 2024, on the Registrar’s website and the NSE website.