Allied Blenders and Distillers Ltd, the producer of Officer’s Choice Whisky, has secured approval from Sebi to raise Rs 1,500 crore through an Initial Public Offering (IPO), as per an update from the markets regulator on Tuesday. The IPO plan includes a fresh issuance of equity shares valued at Rs 1,000 crore and an Offer-for-Sale (OFS) of shares worth Rs 500 crore by promoters, as detailed in the Draft Red Herring Prospectus (DRHP).
Under the OFS, shares will be sold by Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria. Allied Blenders and Distillers Ltd, which submitted preliminary IPO papers to Sebi in January, received its observations on May 10, indicating the regulator’s approval for the public issue. Obtaining observations from Sebi implies clearance to proceed with the IPO. As outlined in the draft documents, the proceeds from the fresh issue, amounting to Rs 720 crore, will primarily go towards debt repayment, with the remainder earmarked for general corporate purposes.
As of December 2023, the company had total debt of approximately Rs 808 crore. With a market share exceeding 8 per cent in the Indian-Made Foreign Liquor (IMFL) market by sales volume in Fiscal 2023, Allied Blenders and Distillers had previously filed draft papers with Sebi in 2022 for a Rs 2,000 crore IPO. While the company received Sebi’s approval for the maiden public issue, it did not proceed with the launch.
Allied Blenders and Distillers is involved in the production, marketing, and sale of alcoholic beverages in India and overseas. Its product range includes various brands of Indian-Made Foreign Liquor (IMFL) across whisky, brandy, rum, and vodka, with Officer’s Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka being some of the major brands.
Additionally, Chhattisgarh-based Vraj Iron and Steel has also received Sebi’s approval to launch its IPO. The proposed IPO consists solely of a fresh issuance of shares worth Rs 171 crore, without any Offer-for-Sale (OFS) component. The company filed its draft IPO papers with Sebi in January and received observations on May 7. Both companies’ equity shares are intended to be listed on the BSE and NSE.
