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Allied Blenders and Distillers IPO Details: Date, Price, Size, GMP & Review

Allied-Blenders-and-Distillers-IPO-Details-Date-Price-Size-GMP-&-Review

Allied Blenders and Distillers Limited – About the Company

Allied Blenders and Distillers is involved in the manufacturing, sale and marketing of alcoholic beverages in India and abroad. Its product range includes five main categories, whisky, brandy,  rum,  vodka and others. It has popular brands like Officer’s Choice Whisky, Sterling Reserve Whisky and Officer’s Choice Blue Whisky, in which Officer’s Choice Whisky is one of the highest-selling whiskies in its price band. However, the company also owns 10 major brands of whisky, rum, brandy, and vodka.

Allied Blenders and Distillers is the third largest India-made foreign liquor (IMFL) maker in India and as per the last report, considering the sales volume in 2021, in the mass production segment, it accounts for 23% market share with the pan-India distribution footprint across the country. The company also export its popular brands to 22 international markets including North &South America, Asia, Europe, Africa and the Middle East.

In India, the company is operating across 30 States and Union Territories with one owned distillery, nine owned bottling units and 23 non-owned manufacturing units. The company also has 12 regional offices and comprehensive route-to-market capabilities to support the sales and distribution to make their products available to customers through 64,001 outlets in India.

In the IMFL space by sales volumes in FY23, it is accounting market share of 8.2%, while the company is expected to gain the market share (in terms of sales volume) of 11.8% in the Indian whisky industry for the fiscal year 2023. Now company is looking to raise funds by launching the IPO and issuing equity shares to the public with certain objectives.

Allied Blenders and Distillers IPO Objectives

Out of the total issue of Rs 1,500 crore, Rs 500 crore will be offer-for-sale (OFS), and Rs 1,000 crore will be a fresh issue. Hence, the funds raised from fresh issues will be used for the repayment of debts approx. amounting to Rs 720 crore and the remaining net proceeds will be used for the scheduled prepayment and general corporate purposes.

Allied Blenders and Distillers IPO Details:

IPO Open Date To be Updated
IPO Close Date To be Updated
Basis of Allotment To be Updated
Listing Date To be Updated
Face Value Rs 2 per share
Price To be Updated
Lot Size To be Updated
Total Issue Size [.] shares
(aggregating up to Rs 1,500.00 crore)
Fresh Issue [.] Shares, aggregating up to Rs 1000.00 crore
Offer For Sale [.] Shares, aggregating up to Rs 500.00 crore
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not less than 75% of the Net Issue
Retail Shares Offered Not more than 10% of the Net Issue
NII (HNI) Shares Offered Not more than 15% of the Net Issue

Source: DRHP

Allied Blenders and Distillers IPO Issue Price & Size

The issue price of Allied Blenders and Distillers IPO is in the range of Rs XXX to Rs XXX. The total issue size of the Allied Blenders and Distillers IPO is Rs 1,500 crore, of which Rs 1000 crore will be the fresh issue and the remaining Rs 500 crore is the offer-for-sale by the existing promoters and shareholders of the company.

Allied Blenders and Distillers IPO Launch Date

The Allied Blenders and Distillers IPO will be open on XXXX and the last date of the IPO is XXXX. Investors can bid in the Allied Blenders and Distillers IPO between these dates. Other details about the IPO like the basis of allotment, credit of shares and listing will be updated soon, or you can check the table.

Allied Blenders and Distillers Financial Statements:

Particulars (Rs in Million) FY24 (5M) FY23 FY22 FY21 CAGR
Revenue from Operations 31,753.27 71,056.80 71,969.20 63,787.76 5.54%
Other Income 11.90 110.69 112.45 190.36
Total Income 31,765.17 71,167.49 72,081.65 63,978.12 5.47%
Operational Expenses 27523.42 61187.63 63334.38 56236.99
Other expenses 3267.40 8019.25 6671.76 5611.17
EBITDA 974.35 1960.61 2075.51 2129.96 -4.06%
EBITDA Margin% 3.07% 2.76% 2.88% 3.34%
Depreciation 207.37 551.43 586.36 587.41
Interest 671.04 1349.72 1450.93 1415.10
Profit Before Tax 95.94 59.46 38.22 127.45  
Total tax 67.45 43.45 23.46 102.37
Profit After Tax 28.49 16.01 14.76 25.08 -20.10%
PAT Margin% 0.09% 0.02% 0.02% 0.04%  
EPS Diluted (Rs) 0.12 0.07 0.06 0.10  

Source: DRHP

Allied Blenders and Distillers Financial Performance

The revenue of the Allied Blenders and Distillers in the first five months of FY24 stood at Rs 3175.32 crore which has grown around 11.8% from the first five months of FY23. The EBITDA of the company in the first five months of FY24 stood at Rs 97.43 crore which has grown (YoY) 29.7% from the first five months of FY23. The PAT for the same period has surged 140% from Rs 1.19 crore in the first five months of FY23 to Rs 2.85 crore in the corresponding period of FY24.

However, for the full year, FY23 the revenue of the company was Rs 7105.68 crore which has marginally grown at a CAGR of 5.54% from Rs 6378.77 crore in FY21. However, the EBITDA of the company has marginally come down from Rs 213 crore in FY21 to Rs 196.06 crore. Similarly, the Net Profit of the company for the same period has shown negative CAGR growth.

The PAT of the company in FY23 was Rs 1.60 crore, which was Rs 2.50 crore in FY21, showing a negative CAGR of 20%. The EBITDA margin of the company trailing around 3% and the PAT margin has remained less than 1% since FY21, generating almost negligible EPS for the shareholders.

Allied Blenders and Distillers IPO Promoters & Shareholding of the Company

As per the draft red herring prospectus (DRHP) Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev and Neesha Kishore Chhabria are the main promoters of the Allied Blenders and Distillers holding 52.20%, 24.05% and 19.96% stakes respectively in the company. In other shareholders list, Oriental Radios Private Limited has a 3.73% stake in the company. For more details of the shareholders check the table below.

S.No. Name of the Shareholder No. of Equity Shares % ofthe pre-Offer Equity Share capital on a fully diluted basis (%)
       
1 Bina Kishore Chhabria 12,74,28,650 52.20%
2 ReshamChhabriaJeetendraHemdev 5,87,14,320 24.05%
3 Neesha Kishore Chhabria 4,87,14,320 19.96%
4 Oriental Radios Private Limited 91,13,665 3.73%
  Total 24,39,70,955 99.94%

 

Out of the total issue size of the IPO, Rs 500 crore will be the offer-for-sale (OFS) of shares by the promoters of the company. Promoter Bina Kishore Chhabria will sell Rs 250 crore of shares, while other promoters Neesha Kishore Chhabriaand Resham Chhabria Jeetendra Hemdev each will offload shares worth Rs 125 crore of shares through the OFS.

Why Invest in Allied Blenders and Distillers IPO?

Investing your money in any company whether it is listed or launched the IPO, you must analyse the various factors that are responsible for the growth of the company. The competitive strength of the company helps to grow its business, while the risk factors affect its growth. Hence, while investing in the company, you need to consider such fundamental factors.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

In respect of the same, we brought here the strength of the company and the risk associated with operating its normal course of business.

Competitive Strengths:

  • India is one of the fastest growing alco-beverage consumption markets among the top economies in the world. And owing to the growing drinking population, India is the largest whisky market in the world. While, the large population base with positive demographic trends especially among the young population, their growing income and increasing urbanisation are major driving growth of the Indian whisky market.
  • Allied Blenders and Distillers are among the largest IMFL companies in India with a diversified and contemporary product portfolio of comprised 17 major brands of IMFL with 10 brands of whisky that include its flagship Officer’s Choice Whisky, Sterling Reserve Whisky and ICONiQ White International Whisky, three brands of rum, three brands of brandy and one brand of vodka.
  • In Fiscal 2023, the sale of whisky accounted for 63% of IMFL sales by volume and 68% by value in India. while the mass premium segment constituted approximately 37% of the total IMFL market in India in Fiscal 2022. Its Officer's Choice Whisky is the market leader in the mass premium segment with a market share of 20.9% in terms of annual sales volumes in Fiscal 2023.
  • The Prestige segment of the company is the largest segment for the whisky market contributing 51% of the whisky market by volume in India at 124 million cases in Fiscal 2023, showing consistent growth over the years and projected to reach 192  million cases contributing  54%  by  Fiscal  Further the introduction of new products within the premium, semi-premium and deluxe segments to strengthen its presence in other categories.
  • The company intends to continue to focus on reducing operating costs and improving utilization by investing in the modernization of manufacturing facilities with relevant technologies and production methods. This will increase their capacity, improve efficiency and operating performance and reduce the need for future capital expenditure of the company.
  • To expand its customer base and enrich the product portfolio, companies intend to selectively pursue strategic acquisitions and investments and other strategic alliance partnerships that are complementary to our growth strategy. This will also add value to our existing portfolio; hence the company is looking to acquire the license of third-party brands in India and overseas.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Risk Factors:

  • The alco-beverage industry is one of the very highly regulated industries in India with strict rules and regulations for the brand promotions, distribution and selling of alcoholic drinks among the people. From obtaining the distillery licenses for production to manufacturing, possession, transportation, purchase and sale of intoxicating liquor and the levy of excise duties everything is regulated by the state governments.
  • India's alco-beverage market is dominated by strong players across different segments including IMFL, beer and wine segments. Though, Allied Blenders and Distiller sis the third largest India-made foreign liquor (IMFL) maker in India but still facing intense competition in the IMFL market in India, from various domestic and multinational companies Bacardi India, United Spirits, John Distilleries, Radico Khaitan Limited and Tilak agar Industries.
  • The inability to maintain the popularity of its brand among the targeted customers, especially for its popular premium brands like Officer's Choice may adversely impact the brand value and popularity of the brands among the consumers resulting in the business growth and financial performance of the company is also going to be affected.
  • As per the company reports, around 51% of the revenue comes from West Bengal, Telangana and Uttar Pradesh. Any decline in sales of alco-beverage in these states can badly affect the business operations, financial performance and future prospects of the company.
  • The top brands of the company like Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue and ICONiQ Whisky generate most of their business from the whisky segment which contributed 97.36 to revenue from operations in FY23, and any decline of revenue from these brands will also adversely affect the overall revenue of the company.
  • Another challenge for the company is company has participated in the state beverage corporation tenders, maintaining the quality standards as per the norms, penalties due to non-compliance with stringent contract terms, regulatory audits and delays in payments.
  • Maintaining the popularity and consumption levels of its top brands like Officer’s Choice is another challenge for the company. The customer's preferences keep changing as per their change in standard of living, lifestyle and income levels. Hence, any kind of negative impact on sales of its popular brands due to such effects will also affect the revenue of the company.
  • The financial performance of the company is not impressive, especially in the last three years. The company has shown almost muted growth in its revenue as well as in the EBITDA. Even the net profit declined at a CAGR of 20% during the same period. The company is running at very low operating margins and almost negligible net profit margins.

Allied Blenders and Distillers IPO Grey Market Premium (GMP)

The grey market premium (GMP) in the IPO is the premium over the issue price discovered by the speculators in the grey market according to the demand and supply of shares. And grey market is that unofficial ecosystem where shares of unlisted companies start trading even before the allotment and listing. The GMP is considered the speculative listing price of shares of the IPO-bounded company.

Hence, you should not consider the GMP as the only reliable factor to speculate the share price of the unlisted company, as there are various factors that affect the stock market in India and the share price of individual listed companies that are considered while investing in such companies.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

The Grey Market Premium or GMP of the Allied Blenders and Distillers is currently Rs XXX, which means shares are trading at the upper band issue price of Rs XXX with premium or discount in the grey market. GMP indicates that the price that investors are ready to pay is more than the IPO issue price.

Allied Blenders and Distillers IPO Review & Analysis

While considering the year-end, net earnings of FY23, the earnings per share (EPS) of the company were Rs 0.07 per share. Though, for the first five months of FY24, the EPS stood at Rs 0.12 per share, if considering this rate of EPS for the full year, then the annualized EPS for the FY24 would be around Rs 0.29 per share that can be used to calculate the P/E with the upper band of IPO share price.

If the Allied Blenders and Distillers IPO is issued at a very high price, which means a very high P/E compared to its peer members, then you can either avoid applying the issue or invest only with the long-term perspective. On the other hand, if the Allied Blenders and Distillers IPOare fairly priced and available at the lower P/E to industry P/E, then you can subscribe for the issue from the listing gain perspective to medium or long-term investment point of view.

How to Apply for Allied Blenders and Distillers IPO?

To apply for the IPO or invest in the stock market in India, you need a trading account and demat account with any depository or broking company. If you don't have any of these or both of these accounts, you can apply here at Moneysukh which offers one-stop trading and investing facilities in equities, commodities and currencies with the lowest brokerage demat and trading account.

Also Read: Trading or Investing  Which is Better and More Profitable

Moneysukh is one of the best discount brokers in India offering the best trading platform for trading or investing in the stock market, commodity market and forex market with the best online trading apps. You can trade here with the most advanced trading software and algorithms like AlgoBulls, Quantman,Trade Radar, TradeTron, Keev, and FoxTrader are integrated best charting system TradingView to provide you all the market data with live feeds giving the best trading experience at every low pricing. However, right now to apply for Allied Blenders and Distillers IPO you can follow the steps given below.

Steps to Apply for Allied Blenders and Distillers IPO:

Step 1: Wait for the date Allied Blenders and Distillers IPO to open for online bidding.

Step 2: Once open, browse trade.moneysukh.com and log in with your User ID & password.

Step 3: Nowexplore the IPO section and click on the Allied Blenders and Distillers IPO.

Step 4: Here you have to fill in the various details like quantity, price and so on.

Note: At the time of applying in any IPO, bid at the cutoff price then submit your application. 

Step 5:Now make the required payment and then submit your IPO application successfully.

Also Read: Types of Risks Associated with Investing in the Stock Market

How to Check Allied Blenders and Distillers IPO Allotment Status?

Checking the IPO status is possible or available only when the bidding date is closed and the basis of the allotment date is arrived. And when you choose the right platform you can use your PAN and IPO application date to check the allotment status of Allied Blenders and Distillers IPO.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

The allotment of shares in the IPO is highly dependent on the subscription of the IPO. If the Allied Blenders and Distillers IPO is oversubscribed many times, then there is less of getting the allotment for every individual. However, you can increase your chances of getting the allotment in the IPO, if you follow the tips and tricks like applying through the HNI category instead of the retail category.

Also Read: How to improve Allotment chances: 15 Tips for investing in IPO

Due to oversubscription if you are unable to get the allocation of any share, then your money will be refunded into your bank account or the fund will be unblocked if applied through the ASBA. However, if you got the allotment of any shares, then the same will be credited into the demat account before the day of listing. If you are getting interesting gains, you can sell and book profits you can sell these shares in the secondary market or keep from the long-term investment point of view.

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

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