Indian-made foreign liquor (IMFL) Allied Blenders and Distillers has filed papers with market regulator Securities and Exchange Board of India (SEBI) to raise Rs 1,500 crore through an initial public offer (IPO). The company initially filed a draft red herring prospectus (DRHP) with the market regulator in June 2022 to raise ₹2,000 crores.
Allied Blenders and Distillers IPO consists of a fresh issue of equity shares seeding up to Rs 1,000 crore and an offer for sale (OFS) aggregating up to. ₹500 crore, according to company’s DRHP dated January 15.
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In accordance with the DRHP, the company plans to use the net income to finance the following objectives such as meeting general corporate objectives; prepayment or scheduled repayment of a portion of any existing loans the company has obtained.
In the OFS, promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra Hemdev would sell shares valued at ₹250 crores and ₹125 crore, respectively. Another member of the promoter group, Neesha Kishore Chhabria, plans to sell shares in the OFS for ₹125 crores.
From the ₹1,000 crore stated in the previous DRHP that the company filed with the SEBI, the OFS size was halved to ₹500 crores. Further, the OFS component was reduced by all three promoters to half.
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The company can think about earning more ₹200 crore through preferential issue or any other means before registering the red herring prospectus for pre-IPO placement with the registrar of companies.
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The book maintenance of main managers of Allied Blenders and Distillers IPO are ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited. The registrar to the offer is Link Intime India Private Limited.
According to the Technopak Report, the company ranks third among Indian IMFL companies in terms of annual sales volumes between Fiscal 2014 and Fiscal 2022, and it is the largest Indian-owned IMFL company, as stated in the DRHP.
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The company has an expected market share (by sales volume) of 11.8% in the Indian whiskey industry for the fiscal year 2023. It is one of only four spirits companies in India with a pan-India sales and distribution network, and it is. is a prominent exporter of IMFL.
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Published: 17 Jan 2024, 08:33 IST