Allied Blenders and Distillers has launched its IPO subscription today, June 25, which will conclude on Thursday, June 27. The price band for the Allied Blenders IPO ranges from ₹267 to ₹281 per equity share, with a face value of ₹2. The company has already secured ₹449.1 crore from anchor investors ahead of its IPO.
The IPO consists of a fresh equity share issuance worth ₹1,000 crore and a promoter offer-for-sale (OFS) of shares valued at ₹500 crore.
Proceeds from the new issuance, totaling ₹720 crore, will be allocated towards general corporate purposes and debt repayment. As of December 2023, the company’s total debt stood at approximately ₹808 crore.
Allied Blenders and Distillers is a leading producer, marketer, and seller of alcoholic beverages in both domestic and international markets. As of Fiscal 2023, it holds a market share exceeding 8% in the Indian-Made Foreign Liquor (IMFL) industry, offering a wide range of brands including Class 21 Vodka, Jolly Roger Rum, Officer’s Choice Whisky, and Sterling Reserve Whisky.
Key risks highlighted in the company’s Red-Herring Prospectus (RHP) include heavy dependence on whisky sales for revenue, fluctuating profit margins, intensifying market competition in the IMFL sector, regulatory impacts, potential termination of agreements with bottling facilities, related party transactions, tax-related uncertainties, and compliance challenges with Central and State regulations.
Disclaimer: Investors are advised to seek advice from certified experts before making investment decisions.
