Indian spirits maker Allied Blenders & Distillers Pvt has filed its draft red-herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise maximum funds. 2,000 crore through Initial Public Offering (IPO).
Makers of Officers’ Choice Whiskey Makes Initial Share Sale 2,000 crore, a new issue of Offer for Sale (OFS) of 1000 crores and maximum shares 1,000 crore by the promoters and shareholders.
Promoter Bina Kishore Chhabria will sell shares of value 500 crore through OFS while promoters Resham Chhabria Jitendra Hemdev and Neesha Kishor Chhabria will sell shares worth Rs. 250 crore each, the company’s draft prospectus showed.
The promoters of the company are Kishore Rajaram Chhabria, Bina Kishore Chhabria, Resham Chhabria Jitendra Hemdev, Bina Chhabria Enterprises Pvt Ltd, BKC Enterprises Pvt Ltd, Oriental Radios Pvt Ltd and Officers Choice Spirits Pvt Ltd.
The proceeds raised through the company are intended to be used IPO For prepayment or scheduled repayment of all or a part of the principal amount on certain loans taken by the company.
“We are in debt and our inability to comply with repayments and other covenants in our financing agreements could adversely affect our business and financial position. In addition, some of our financing agreements involve variable interest rates and an increase in interest rates may adversely affect the results of our operations and financial position,” the Mumbai-based distiller said in its offer document.
Allied Blenders & Distillers (ABD), the largest Indian spirits company and manufacturer of prestigious products such as Officers’ Choice Whiskey and Sterling Reserve. Allied Blenders sells spirits in 29 countries, from whiskey and rum to brandy and vodka, according to its website. It has nine bottling units, a distilling facility and more than 20 outsourced manufacturing sites.
The revenue of blenders and distillers associated with the operation was 6,378 crore for the financial year 2021 while the revenue from operations for the nine months ended December 2021 was 5,444.9 crores.
ICICI Securities Limited, Axis Capital Limited, JM Financial Limited, Kotak Mahindra Capital Company Limited and Equirus Capital Private Limited are the Book Running Lead Managers and Link Intime India Private Limited is the Registrar of Offers. The equity shares are proposed to be listed on BSE and NSE.