Allied Blenders and Distillers IPO: Price band fixed at ₹267-₹281 per share; check subscription and listing dates, other details

Allied Blenders and Distillers, the manufacturer of Officer’s Choice whisky, has unveiled the price band for its upcoming initial public offering (IPO).

The public issue will open for subscription with a price band in the range of ₹267 to ₹281 per share, as per the documents submitted by the company.

The subscription window will open on June 24 and close on June 27. The allotment status is expected to be finalised on June 28, and the refund process will be initiated for investors who could not be allotted the shares from July 1.

The shares are expected to be listed on the NSE and BSE on July 2.

Allied Blenders and Distillers IPO size

The ₹1,500-crore book-building issue comprises a fresh issue of shares and an offer-for-sale (OFS).

The company aims to raise ₹1,000 crore through fresh issue of shares of a face value of ₹2 each and another ₹500 crore via OFS, according to the Draft Red Herring Prospectus (DRHP).

ICICI Securities Limited, Nuvama Wealth Management Limited, and Iti Capital Ltd are the book-running lead managers for the issue, and Link Intime India Private Ltd is the registrar.

The promoters of the company include Kishore Rajaram Chhabria, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, Bina Chhabria Enterprises Private Limited, BKC Enterprises Private Limited, Oriental Radios Private Limited, and Officer's Choice Spirits Private Limited. Before the issue, the promoters collectively hold a 96.21% share in the company.

Allied Blenders and Distillers IPO objective

Allied Blenders and Distillers Limited intends to utilise the net proceeds from the IPO for prepayment or scheduled repayment of a portion of the company’s outstanding borrowings and for general corporate purposes.

Allied Blenders and Distillers IPO strengths and risks

The company aims to become debt-free after the successful completion of the public issue. The move will also strengthen the IMFL producer’s financial position while supporting the company’s long-term expansion plans.

Allied Blenders and Distillers faces a few risks in its operations. The company heavily relies on the sales of its whisky products, and any decline in sales could significantly impact its business, financial health and future prospects. Moreover, a substantial portion of its sales are concentrated in key states like West Bengal, Telangana and Uttar Pradesh, and a reduction in sales in these regions could adversely affect its performance. Also, potential increase in taxes or changes in tax policies could affect product demand and adversely affect the company’s business outcomes.

Allied Blenders and Distillers financials

Allied Blenders and Distillers Limited’s consolidated revenue from operations decreased by approximately 1.27% to ₹7,105.68 crore in the financial year ending March 31, 2023, compared to ₹7,196.92 crore in FY22. The company’s profit after tax (PAT), however, rose significantly by around 85.47% to ₹4.34 crore in the financial year ending March 31, 2023, compared to ₹2.34 crore in March 31, 2022.

About Allied Blenders and Distillers

Allied Blenders and Distillers, founded in 2008, is engaged in the manufacturing, marketing and sale of alcoholic beverages both in India and abroad. The company’s product portfolio includes various brands of Indian-Made Foreign Liquor (IMFL), such as whisky, brandy, rum and vodka.

Officer’s Choice Whisky, introduced in 1988, marked the company’s foray into the mass premium whisky market and has since become a prominent offering in its portfolio. Additionally, it markets packaged drinking water under brands such as Officer’s Choice, Officer’s Choice Blue and Sterling Reserve.

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