Allied Blenders and Distillers Limited IPO : Key Highlights

Allied Blenders and Distillers Limited IPO is set to launch on 25 June, 2024. Incorporated in 2008, the company is an Indian-owned Indian-made foreign liquor (IMFL) company having five main categories i.e. whisky, brandy, rum, vodka and gin. It also sells packaged drinking water under our Officer’s Choice, Officer’s Choice Blue and Sterling Reserve brands. ABDL is the largest Indian-owned Indian-made foreign liquor company and the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2022. It is one of the only four spirits companies in India with a pan-India sales and distribution footprint, and a leading exporter of IMFL, and had an estimated market share (in terms of sales volume) of 11.8% in the Indian whisky market for Fiscal 2023. 

Its flagship brand, Officer’s Choice Whisky was launched in 1988 with its entry into the mass premium whisky segment. Officer’s Choice Whisky has been among the top selling whisky brands globally in terms of annual sales volumes between 2016 and 2019.

Other Information

Over the years, it has expanded and introduced products across various categories and segments. As of December 31, 2023, its product portfolio comprised 16 major brands of IMFL across whisky, brandy, rum and vodka. Certain of its brands, such as, Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue and ICONiQ Whisky, are ‘Millionaire Brands’ or brands that have sold over a million 9-litre cases in one year. 

The company has over the years established market leadership in the alcoholic beverages market in India with a market share of 8.2% in IMFL market by sales volumes in Fiscal 2023.

Company Information

Over the years, it has developed an extensive pan-India sales footprint and as of December 31, 2023 the company has 12 sales support offices, and pan-India route-to-market capabilities covering all channels and alcohol permitted States and Union Territories. In addition, as of December 31, 2023, it exported products to 14 international markets, including countries in the Middle East, North America, Africa, Asia and Europe.

As of December 31, 2023, ABDL relied on 32 bottling facilities, including 9 bottling facilities owned and operated by it and contract bottling facilities both on exclusive and non-exclusive basis. The company has entered into 18 bottling agreements on a non-exclusive basis including one where it has entered into a royalty arrangement dated March 30, 2021 with a third-party manufacturer for a period of five years to manufacture, blend, bottle, process and package ABDL’s products at their distillery under ABDL’s brand name for which royalty is paid to the Company. As of December 31, 2023, it had 3627 employees on its payroll. 

Allied Blenders and Distillers Limited IPO DETAILS

Allied Blenders and Distillers Limited IPO is set to launch on 25 June, 2024. The subscription timeline extends till 27 June, 2024. The size for the IPO is Rs. 1500 Crore. Shares issued through fresh issue mode are worth Rs 1000 Crore. Shares issued through offer for sale mode are worth Rs. 500 Crore. The lot size is 53 shares and the price is Rs. 267 to Rs. 281 per share. The company is going to get listed at BSE and NSE. The face value per share is Rs. 2 and this is a Book Built Issue. The registrar for the company is Link Intime India Private Limited.

Tabular Description of Allied Blenders and Distillers Limited IPO

Allied Blenders and Distillers Limited IPO: IMPORTANT DATES

Allied Blenders and Distillers Limited IPO begins for subscription from 25 June, 2024. The IPO subscription would continue till 27 June, 2024. The allotment status for the shareholders who applied would come on 28 June, 2024. The refunds for the ones who did not get allotment would be initiated on 1 July, 2024. The DEMAT accounts of shareholders would be credited on 1 July, 2024. The listing of the company would be completed on 2 July, 2024.

Allied Blenders and Distillers Limited IPO: Lead Managers

The lead managers are :

• ICICI Securities Limited 
• Nuvama Wealth Management Limited 
• Iti Capital Ltd 

The minimum lot size for retail investors is 53 shares, amounting to Rs. 14893. The maximum lot size for retail investors is 689 shares, amounting to Rs. 193609. The minimum and maximum lot size for S-HNI and B-HNI are as under: 

OBJECTIVES FOR THE IPO

• Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company and
• General corporate purposes.

COMPANY FINANCIALS

PROS

• The company is one of the leading players in the IMFL segment.
•  It is one of the only four spirits companies in India with a pan-India sales and distribution footprint, and a leading exporter of IMFL, and had an estimated market share (in terms of sales volume) of 11.8% in the Indian whisky market for Fiscal 2023. 
• The company has over the years established market leadership in the alcoholic beverages market in India with a market share of 8.2% in IMFL market by sales volumes in Fiscal 2023 
• As of December 31, 2023, it exported products to 14 international markets, including countries in the Middle East, North America, Africa, Asia and Europe.

Allied Blenders and Distillers Limited IPO Application Process with Zerodha

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1.   Logging into Zerodha console through its website or KITE platform. Clicking the IPO section present in the ORDER tab.
2.   Click the Allied Blenders and Distillers Limited IPO button and press the BID button.
3.   Entering the details asked for like UPI ID, Quantity and price.
4.   Submit the application form for the IPO.
5. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.