Allied Blenders and Distillers is set to launch its initial public offering (IPO), aiming to raise Rs 1,500 crore. This includes a fresh issue of Rs 1,000 crore and an offer-for-sale (OFS) worth Rs 500 crore by its promoters and other investors.
1. Founding and Flagship Brand Founded in 2008, Allied Blenders and Distillers introduced Officer’s Choice whiskey in 1988, marking its entry into the premium whiskey market.
2. Business Operations The company operates both domestically in India and internationally, manufacturing and selling a range of alcoholic beverages. Its product lineup includes vodka, rum, whiskey, and brandy under various brands.
3. Promoters Prominent promoters involved in the IPO include Kishore Rajaram Chhabria, Bina Kishore Chhabria, and Resham Chhabria Jeetendra Hemdev, along with several related entities.
4. Peers in the Industry Comparable companies in the industry include Globus Spirits Ltd, Radico Khaitan Ltd, and United Spirits Ltd, each with their own market dynamics.
5. Product Portfolio As of December 2023, Allied Blenders and Distillers boasted a portfolio of 16 major Indian Made Foreign Liquor (IMFL) brands, spanning whiskies like Officer’s Choice and Sterling Reserve, among others.
6. Manufacturing and Bottling Facilities The company operates a significant distillery in Rangapur, Telangana, capable of producing 600.00 lakh liters of extra neutral alcohol (ENA) annually. It also utilizes nine owned bottling units and collaborates with additional bottling facilities across India.
7. Market Presence Present in 22 states and Union Territories in India, Allied Blenders and Distillers has established itself as a key player in the alcoholic beverages market.
8. Industry Growth India’s market for alcoholic beverages has seen robust growth, driven by increasing consumption trends over the years.
9. Financial Performance Despite challenges like COVID-19, the company has shown strong operational cash flows. Their net cash generated from operations in recent fiscal years underscores their financial resilience.
10. Risk Factors Investors should consider risks such as fluctuating profit margins, competitive pressures in the IMFL industry, and their potential impact on the company’s financial stability.
The IPO promises insights into Allied Blenders and Distillers’ strategic direction, market positioning, and financial health, offering investors a comprehensive view before making investment decisions.
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