Allied Blenders And Distilleries IPO: All You Need To Know

Allied Blenders and Distillers Ltd., a prominent name in India's spirits industry, is gearing up for an initial public offering aimed at raising Rs 1,500 crore. The IPO, structured as a book-built issue, comprises a fresh issue of 3.56 crore shares worth Rs 1,000 crore and an offer for sale of 1.78 crore shares, totaling Rs 500 crore.

The subscription window for the IPO will open on June 25 and close on June 27.

Retail investors will need to make a minimum investment of Rs 14,893, given the lot size of 53 shares. The structured investment requirements are designed to cater to a broad range of investors.

• Retail investors: minimum of one lot (53 shares), totaling Rs 14,893.

• Small non-institutional investors: minimum of 14 lots (742 shares), amounting to Rs 2,08,502.

• Big non-institutional investors: minimum of 68 lots (3,604 shares), amounting to Rs 1,012,724.

• Issue opens: June 25.

• Issue closes: June 27.

• Issue price: Rs 267 to Rs 281 per share.

• Fresh issue: Rs 1,000 crore.

• Offer for sale: Rs 500 crore.

• Total issue size: Rs 1,500 crore.

• Bid lot: 53 shares.

• Listing: BSE and NSE.

The company plans to utilise the net proceeds from the fresh issue for prepayment or scheduled repayment of outstanding borrowings and general corporate purposes.

Founded in 2008, Allied Blenders and Distillers specialises in Indian made foreign liquor. They offer a diverse range of products, including whisky, brandy, rum, and vodka. They also sell packaged drinking water under the Officer's Choice, Officer's Choice Blue, and Sterling Reserve brands.

Officer's Choice Whisky, launched in 1988, marked the company's entry into the mass premium whisky market. It has been one of the top-selling whisky brands globally by annual sales volume from 2016 to 2019.

In fiscal 2023, Allied Blenders and Distillers' revenue decreased 1.27% to Rs 7,106 crore, while its profit after tax increased by 14.28% to Rs 1.6 crore.

Here are some key performance indicators for Allied Blenders and Distillers:

• Return on equity: 1.03%.

• Return on capital employed: 24.35%.

• Debt-to-equity ratio: 1.88.

• Return on net worth: 1.03%.

• Price-to-book value: 16.77.

• Profit after tax margin: 0.17%.

Some key risks include:

1. A decline in whisky sales could negatively impact the company's business performance and financial health.

2. Adapting to changing customer preferences is crucial for maintaining brand popularity and future success.

3. Inability to raise product prices can shrink profit margin, affecting the company's overall financial stability.