Allied Blenders IPO, a book-built issue, comprises both a fresh issue as well as an offer for sale.
Issue Size
The company will be raising a total of Rs 1,500 crore. Out of this, the company will use Rs 1,000 crore by offering 35.6 million shares, while promoters and other shareholders will dump their 17.8 million shares to collect Rs 500 crore.
Bidding Date
The company will open the subscription to investors for bidding on June 25 and close it on June 27.
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Price Band
The home-based foreign liquor distiller kept the price band in a range of Rs 267 to Rs 281 per equity share.
Allotment of Shares
The company, which is in the business of liquor, will see the allotment of shares finalised by June 28. An IPO allotment occurs when investors who applied for the IPO share by submitting the application are successfully credited with the shares in their D-Mat accounts by the registrar.
Listing
Allied Blenders & Distillers has fixed the tentative listing date for July 02.
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A retail investor needs to apply for at least one lot containing 53 shares, which aggregates to Rs 14,893. Meanwhile, non-institutional investors and qualified institutional buyers need to submit applications for different lot sizes.
Employee Reservation
The company has kept aside a part of the issue for employees. The company will be offering 117,647 shares of the company to employees at a discount of Rs 26 on the issue price.
Book Runners
The company chose ICICI Securities, Nuvama Wealth Management, and ITI Capital as the book-running lead managers.
Registrar
Link Intime India is working as the registrar for the issue.
About Allied Blenders & Distillers
Allied Blenders and Distillers is the largest exporter of Indian-made foreign liquor in the country. It has 16 brands under its portfolio, with Officer’s Choice being the first and the biggest brand, it accounted for 62% (18.9 million cases) of the total whisky volumes in 9M FY24. The company sold a total of 24.6 million cases till 9M FY24, out of which whisky accounted for 96% (23.6 million cases) and it also commands 94% of the total revenue. The company has recently launched its first luxury brand for the Gin segment under the brand ‘Zoya,’ which is only available in the states of Maharashtra and Haryana.
Prabhudas Lilladher on IPO
“The IPO has been valued below leading players (USL and Radico), which is rightly so (on EV/EBITDA), given the higher mass volumes in ABD. Also, if we adjust the PAT based on the debt repayment from the IPO proceedings (assuming the IPO gets fully subscribed), the PE ratio falls to 56-59 levels. The company is planning to focus on the premium segment which will lead to margin expansion, along with that the company expects a margin-driven volume expansion in Officer’s Choice. As per the management, the company can also take a JV route to develop its premiumisation journey with International players. Given the expected long growth runway for liquor players, the dominance of whiskey in the liquor segment, limited pan-India players in the segment and growing premiumization play in the economy, we assign a “Subscribe” rating to the IPO,” said Prabhudas Lilladher in an IPO note.