INDIA'S ALLIED BLENDERS & DISTILLERS TO RAISE USD 253M FROM IPO
By Siulan Law Mathews DipWSET
Source: Allied Blenders and Distillers Ltd
Leading Indian whisky brand Officer's Choice’s owner, Allied Blenders and Distillers Ltd. (ABD), has filed application for an initial public offering (IPO) to raise INR 20 billion (USD253 million).
ABD is one of the leading four spirits companies in India, with a pan-India sales and distribution network.
The company’s product portfolio comprises 10 major brands of Indian-made foreign liquor across whisky, brandy, rum and vodka categories, including brands like Sterling Reserve, Kyron and Class 21, on top of Officer’s Choice.
The planned IPO comprises of issuing equity shares worth INR10 billion and an offer for sale (OFS) by the promoters worth another INR10 billion.
According to the draft IPO document, the company will use the net proceeds for repaying borrowings and for general corporate purposes.
"The company will use INR7.089 billion from the net proceeds towards prepayment or scheduled repayment of all, or a portion, of the principal amount on certain loans," said the document.
ABD's total outstanding borrowings stand at INR9.268 billion as of 31 December 2021, the document said.
The company is one of the biggest distillers in India in terms of annual sales, in the first three quarters of 2021, the company had sold 20.66 million cases of Indian-made liquor in the country.
It possessed an overall market share of 8.2 percent in the Indian-made liquor market in 2021.
The draft IPO document said each of the selling shareholders will be entitled to the proceeds of the OFS after deducting their respective portion-related expenses and relevant taxes.
The company will not receive any funds from the OFS, the OFS proceeds will not form part of the net proceeds.
The company's net cash generated from operating business was INR1.91 billion, INR5.95 billion, INR2.46 billion and 0.95 billion in 2019, 2020, 2021 and in the first three quarters in 2021 respectively.
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