Allied Blenders and Distillers Limited is set to enter the capital market with an Initial Public Offering (IPO) of 53,380,783 Equity Shares of Rs 2, with a total value of Rs 1,500 Crore via Fresh issue of Rs 1000 crore and Offer for Sale of Rs 500 crore. The offering price (Allied blenders and distillers share price) for the IPO has been fixed within the range of Rs 267 to Rs 281 per Equity Share.

The IPO is scheduled to commence on Jun 25, 2024, and will remain open for subscription until June 27, 2024. Following the IPO, the equity shares of the company will be publicly listed on both the BSE and NSE stock exchanges.

Allied blenders & distillers IPO Details

Summary

Particulars	Details
Allied blenders and distillers IPO date	June 25, 2024 to June 27, 2024
Face Value	Rs 2 per share
Price Band	Rs 267 to Rs 281 per share
Lot Size	53 Shares
Total Issue Size (aggregating up to Rs 1,500 Cr)	53,380,783 shares
Fresh Issue (aggregating up to Rs 1,000 Cr)	35,587,189 shares
Offer for Sale (aggregating up to Rs 500 Cr)	17,793,594 shares of Rs 2
Employee Discount	Rs 26 per share
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Shareholding pre-issue	24,41,13,665
Shareholding post issue	27,97,00,854

Allied blenders and distillers IPO Reservation

Particulars	Details
Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Net Issue
Retail Shares Offered	Not less than 35% of the Net Issue
NII (HNI) Shares Offered	Not less than 15% of the Net Issue

Allied Blenders and distillers IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	53	Rs 14,893
Retail (Max)	13	689	Rs 193,609
S-HNI (Min)	14	742	Rs 208,502
S-HNI (Max)	67	3,551	Rs 997,831
B-HNI (Min)	68	3,604	Rs 1,012,724

Allied Blenders and distillers IPO Promoter Holding

Particulars	Details
Share Holding Pre-Issue	96.21%
Share Holding Post Issue	80.91%

About Allied blenders and distillers

Allied Blenders and Distillers is an Indian liquor company that was incorporated in 2008. The company Allied blenders and distillers offers four categories of Indian-made foreign liquor: whisky, brandy, rum, and vodka. Additionally, they sell packaged drinking water under the Officer’s Choice, Officer’s Choice Blue, and Sterling Reserve brands.

Their Officer’s Choice Whisky, introduced in 1988, is one of the world’s top-selling whisky brands in terms of annual sales volumes between 2016 and 2019.

As of December 31, 2021, the company exports its products to 22 international markets, including the Middle East, North and South America, Africa, Asia, and Europe.

The company owns and operates a distillery in Rangapur, Telangana, spread over 74.95 acres with a built-up area of over 25,000 square meters. Their in-house distillation capacity of extra neutral alcohol (ENA), the key material used in manufacturing their products, is 54.75 million litres annually.

The company also has extensive bottling capabilities across India, relying on 30 bottling facilities, including those owned and operated by them, and contract bottling facilities, both exclusive and non-exclusive, for bottling its products as of December 2022.

They are the biggest Indian-owned maker of Indian-made foreign liquor (IMFL) and the third-largest IMFL company in India based on annual sales volumes from Fiscal year 2014-2022, according to the Technopak Report.

Their company is one of only four spirits companies in India with a nationwide sales and distribution network, and they are also a top exporter of IMFL. They had an estimated 11.8% market share in the Indian whisky market for Fiscal 2023.

Financials of the Company

Allied Blenders and Distillers Limited Financial Information (Restated Consolidated)

In the financial year ending on March 31, 2023, Allied Blenders and Distillers Limited experienced a decrease in revenue by -1.27%, while their profit after tax (PAT) saw a healthy increase of 8.47% compared to the financial year ending on March 31, 2022.

Period Ended	31-Dec-23	31-Mar-23	31-Mar-22	31-Mar-21
Assets	2,741.39	2,487.70	2,248.35	2,298.57
Revenue	5,914.98	7,116.75	7,208.17	6,397.81
Profit After Tax	4.23	1.6	1.48	2.51
Net Worth	409.26	406.1	404.1	381.78
Reserves and Surplus	360.43	357.28	356.99	327.85
Total Borrowing	798.11	780.82	846.91	954.74

(Amount in Rs Crores)

Key Performance Indicators (KPI)

KPI	Values
ROE (Return on equity)	1.03%
ROCE (Return on Capital Employed)	24.35%
Debt/Equity	1.88
RoNW (Return on Net Worth)	1.03%
P/BV (Price to Book Value Ratio)	16.77
PAT(Profit After Tax) Margin (%)	0.17

Objectives of the Allied Blenders IPO

The primary objectives for the use of the Net Proceeds from the Allied Blenders IPO are as follows:

1) Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company to reduce debt obligations and improve financial stability.

2) Funding general corporate purposes to support the overall business operations and growth initiatives of the company.

Risks one should know before investing with the Allied Blenders

1. A decrease in the sales of whisky could have a significant negative impact on the overall business performance and financial health of the company.
2. The future performance of a brand can be significantly affected by shifts in customer preferences and the brand’s ability to maintain its popularity. It’s important to stay attuned to changing consumer tastes and consistently work on preserving the brand’s appeal to sustain success.
3. When a company is unable to raise the selling price of its products or services, it can have a significant impact on its profit margin. This is because the profit margin is the difference between the cost of producing the goods or delivering the services and the price at which they are sold. If the selling price cannot be increased, the profit margin decreases, which can have implications for the overall financial health of the business.

Strengths of the company

1. The brand has established a strong presence and recognition in the Indian market, reaching customers across the entire country.
2. The company boasts a wide range of modern and varied products in its portfolio, catering to a diverse set of customer needs and preferences.
3. The company Allied Blenders maintains a dedicated in-house research and development team that focuses on driving product innovation and ensuring stringent quality control measures.

Conclusion

The company Allied Blenders is a well-known leader in the Indian IMFL (Indian Made Foreign Liquor) industry. They have a strong range of popular brands and a wide distribution network. Their flagship products include Officer’s Choice Whisky and other respected ‘Millionaire Brands’. They are recognized as market leaders and have successfully expanded their presence in India and internationally. Their commitment to maintaining high standards of quality, excellence, and customer satisfaction sets them apart and ensures ongoing success in the competitive IMFL industry.

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Frequently Asked Questions (FAQs)

1) Who are the book runners to Allied Blenders IPO?

The IPO book runners for Allied Blenders and Distillers include ICICI Securities Ltd, Axis Capital Ltd, JM Financial Ltd, Kotak Mahindra Capital Company Ltd, and Equirus Capital Private Ltd.

2) What are the key strategies of Allied Blenders IPO?

a) Aim to expand the market share of Officer’s Choice Whisky in various regions.

b) Launch new products in the premium, semi-premium, and deluxe segments to enhance the brand’s position in other categories.

c) Remain committed to enhancing operational efficiencies as a primary focus.

3) How can a Retail Investor purchase Allied Blenders IPO shares?

Allied Blenders and Distillers Limited has initiated the process of selling its shares to the public via an Initial Public Offer (IPO). Retail investors have the option to submit their applications for Allied Blenders IPO shares online through banks (using ASBA) or via a broker (using UPI).