Next week heralds the debut of Allied Blenders and Distillers IPO, one of several that will engage investors as initial public offerings inundate D-Street. On Monday, June 24, the Allied Blenders and Distillers IPO's allocation to anchor investors is expected. The IPO subscription period for Allied Blenders and Distillers is scheduled to begin on Tuesday, June 25, and end on Thursday, June 27. The producer of Officer's Choice whisky has set the price range between Rs.267 to Rs.281 per equity share of the face value of Rs.2.
The Rs.1,500 crore Allied Blenders and Distillers IPO consists of a fresh issue of Rs.1,000 crore and an offer-for-sale (OFS) of Rs.500 crore worth of equity shares by the promoters and other investors. Promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra Hemdev will be selling the shares in the OFS.
Allied Blenders and Distillers ventured into the mainstream premium whiskey market with the launch of their flagship brand, Officer's Choice whiskey, in 1988.
The company produces, promotes, and sells alcoholic beverages both domestically and internationally. Its product range includes a variety of IMFL brands such as vodka, rum, whiskey, and brandy.
Here are 10 important details from the Red Herring Prospectus (RHP) that investors might want to review before subscribing to the issue.
The promoters of the company include Kishore Rajaram Chhabria, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, Bina Chhabria Enterprises Private Limited, BKC Enterprises Private Limited, Oriental Radios Private Limited, and Officer’s Choice Spirits Private Limited.
The company's listed peers are Globus Spirits Ltd (P/E ratio of 17.26), Radico Khaitan Ltd (P/E ratio of 95.87), and United Spirits Ltd (P/E ratio of 73.16).
Allied Blenders and Distillers, an Indian-made international liquor company, was established in 2008. The firm offers whiskey, brandy, rum, and vodka—four varieties of international liquor produced in India. Additionally, they sell packaged drinking water under the Sterling Reserve, Officer's Choice, and Officer's Choice Blue brands.
Allied Blenders and Distillers Product Portfolio
As of December 31, 2023, the company's product lineup comprised 16 major IMFL brands. Among these, there were 10 whisky brands, including the flagship Officer's Choice Whisky, Sterling Reserve Whisky, and ICONiQ White International Whisky. Additionally, there were three rum brands, three brandy brands, and one vodka.
In January 2024, the company launched Zoya Special Batch Premium Gin. In India, their products are available across various price points within different IMFL categories.
Allied Blenders and Distillers Manufacturing Facilities
The company's distillery is located in Rangapur, Telangana, covering 74.95 acres with a built-up area of 25,000 square meters. We have the capacity to produce 600.00 lakh liters of extra neutral alcohol (ENA) annually through our in-house distillation process. As of December 31, 2023, the company also maintains a nationwide presence across 22 States and Union Territories, with significant bottling capabilities through a combination of owned and third-party facilities.
As of December 31, 2023, the business owned and operated nine bottling units. It also had agreements with five additional bottling facilities, enabling the full utilization of their licensed capacity. The company has established partnerships with various bottlers over the years, and as of December 31, 2023, it had 18 non-exclusive bottling agreements, one of which included a royalty arrangement. By December 31, 2023, 32 bottling facilities were packaging the company's products.