Allied Blenders and Distillers Limited

About  Allied Blenders and Distillers Limited

Incorporated in 2008, Allied Blenders and Distillers is an alcoholic beverage maker. It is one of the largest Indian-made foreign liquor (IMFL) brands in India, with a market share of over 11.8% in the whisky market as of FY23. 

As of 31 December 2023, its product portfolio comprises 16 major IMFL brands across whisky, brandy, rum, vodka, and gin. These brands are sold under the brand names Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky. These also happen to be ‘Millionaire Brands’ or brands that have sold over a million 9-litre cases in one year. 

The company has a pan-India distribution network through which it sells its products in 79,329 retail outlets in 30 states and Union Territories in India. As of 31 December 2023, it also 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 in Rangapur, Telangana. It has an in-house distillation capacity of 60 million litres per year for ENA, or extra neutral alcohol, which is the key material used in the manufacture of its products. As of December 2023, it owns and operates 9 bottling units, and has arrangements with 5 bottling facilities on an exclusive basis and 18 ones on a non-exclusive basis. 

Between FY21 and FY23, its revenue from operations rose 3% at a CAGR of 3%. Meanwhile, its net profit fluctuated from ₹2.5 crore in FY21 to ₹1.60 crore in FY23, mainly due to the lockdown during COVID-19 and an increase in expenses. 

Between Q3 FY23 and Q3 FY24, its revenue from operations rose 9% YoY, and its profit rose 46% YoY. However, the IMFL market is expected to grow at a CAGR of 9% and 5.7% in terms of IMFL sales value and volume between FY23 and FY28, which could benefit the company. 

Furthermore, India is one of the fastest-growing alcoholic beverage markets in the world. Per capita consumption of pure alcohol has grown steadily from 1.3 litres in 2005 to 3.2 litres in 2023, but it is still significantly lower compared to global per capita consumption. Hence, low per capita consumption coupled with positive demographic factors and more than 13 million people added each year to the population eligible for drinking, make India an attractive market for alcoholic beverages.

And now, Allied Blenders and Distillers Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹1,500 crore, comprising fresh issue, aggregating to ₹1000 crore, as well as an offer for sale, aggregating to ₹500 crore. The money raised from the fresh issue will be utilised for the repayment of borrowings and general corporate purposes. Its shares will be listed on the NSE and BSE.    

Here are key details about the Allied Blenders and Distillers Limited IPO:

Financial snapshot

Here’s a quick look at Allied Blenders and Distillers Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Third largest IMFL company in India, in terms of annual sales volumes between FY14 and FY22. 
2. Strong brand recognition with Officer’s Choice Whisky being the market leader in the mass premium segment, with a market share of 20% in terms of annual sales volumes in FY23. 
3. Strategically located, large-scale and advanced manufacturing facilities and bottling units located in 22 states and UTs as of Q3 FY24, allow it to manufacture its products locally and at optimum cost. 
4. As of Q3 FY24, it has access to an extensive pan-India distribution network and exports its products to 14 countries, including the United Arab Emirates, Haiti, Oman, Nigeria, Hong Kong, and Qatar.  
5. Well-positioned to capture tailwinds in the Indian IMFL industry, which is the largest segment of the Indian alco-beverage market. 

Risks and threats

1. Depends on the sale of its whisky products as it accounted for 94.3% of the total revenue from operations in Q3 FY24.
2. The company is dependent on the states of West Bengal, Telangana and Uttar Pradesh for sales of its IMFL products, which account for over 41% of total revenue in Q3 FY24. Hence any regulatory changes by the state government could impact the company’s sales.
3. It has experienced volatile fluctuations in profit due to lockdowns and an increase in total expenses without an increase in revenue. 
4. The company is unable to increase the selling price of its products as prices of alcoholic beverages in India are controlled by respective state governments with varying tax structures. 
5. Significantly dependent on the sale of its products to its top five customers, which include state beverage corporations and private distributors. These customers accounted for 43% of its total revenue from contracts in Q3 FY24. 
6. Restrictions on advertising of alcoholic beverage products in India limit its ability to advertise its products. 
7. Has incurred indebtedness amassing to ₹834 crore as of 31 March 2024. 
8. Faces competition from United Spirits, Pernod Ricard India, Radico Khaitan, John Distilleries, Tilak Nagar Industries, Jagatjit Industries and Globus Spirits.

Allied Blenders and Distillers Limited IPO details

|Allied Blenders and Distillers Limited IPO date

According to the offer document filed by the company with the SEBI, the Allied Blenders and Distillers IPO’s opening date – in other words, the Allied Blenders and Distillers IPO launch date – will be 25th June 2024. The Allied Blenders and Distillers IPO closing date is 27th June 2024. After this, investors will be updated about the allotment status on 28th June 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on 1 July 2024. The Allied Blenders and Distillers IPO listing date is 2 July 2024. The listing date is the date on which a company's shares are listed on the bourses, NSE and BSE. 

|Allied Blenders and Distillers Limited IPO Price Band

The IPO is a fresh issue as well as an offer for sale. The Allied Blenders and Distillers IPO price band has been set between ₹267 and ₹281 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Allied Blenders and Distillers IPO listing price will be determined on 2nd July 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Allied Blenders and Distillers Limited IPO Lot size

The Allied Blenders and Distillers IPO details have been declared. The Allied Blenders and Distillers IPO lot size is set at 53 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Allied Blenders and Distillers IPO issue size is approx ₹1,500 crore. 

How to pre-apply for the Allied Blenders and Distillers Limited IPO?

You can pre-apply for the Allied Blenders and Distillers Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Allied Blenders and Distillers Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Allied Blenders and Distillers Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Allied Blenders and Distillers Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Allied Blenders and Distillers Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Allied Blenders and Distillers Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Allied Blenders and Distillers Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Allied Blenders and Distillers Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Allied Blenders and Distillers Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Allied Blenders and Distillers Limited IPO

To apply for the Allied Blenders and Distillers Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Allied Blenders and Distillers Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Allied Blenders and Distillers Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.