India’s largest IMFL co Allied Blenders and Distillers files for 2,000 cr IPO

Mumbai-based Allied Blenders and Distillers, largest Indian-owned Indian-made foreign liquor (“IMFL”) files Draft Red Herring Prospectus (DRHP) with market regulator SEBI to raise funds through 2000 crore IPO.

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Mumbai-based Allied Blenders and Distillers, the largest Indian-owned Indian-made foreign liquor (“IMFL”) company and the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2021 has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 1000 crore and an offer-for-sale (OFS) of Rs 1000 crore by Promoter and selling shareholders i.e Bina Kishore Chhabria up to Rs 500 cr, up to Rs 250 cr by Resham Chhabria and Jeetendra Hemdev and up to Rs 250 cr by Neesha Kishore Chhabria. The offer also includes a reservation for subscription by eligible employees.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

The company, in consultation with the lead bankers to the issue may consider a preferential issue of equity shares. Or any other method aggregating up to Rs 200 crore. If such placement is completed, the fresh issue size will be reduced.

The proceeds from its fresh issuance worth Rs. 708.98 crore will be utilised for prepayment or scheduled re-payment of a portion of certain outstanding borrowings. And balance for general corporate purposes.

Allied Blenders and Distillers’ revenue from operations stood at Rs 6378.78 crore for Fiscal 2021. And profit after tax at Rs 2.51 crore. For nine month ending December 2021, revenue from operations stood at Rs 5444.98 crore. And profit after tax at Rs 3.30 crore.

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