Officers Choice Whisky Maker Raises Rs 449 Cr from Anchor Investors Before IPO

Allied Blenders and Distillers Ltd, the producer of Officers Choice Whisky, announced on Monday that it has secured Rs 449 crore from anchor investors. This funding comes just a day before its initial public offering (IPO) opens for public subscription. According to a circular on the BSE website, shares were allotted to several anchor investors including Nippon India Mutual Fund, LIC Mutual Fund, JM Financial Mutual Fund, Jupiter India Fund, Societe Generale, Goldman Sachs Singapore Pte, Wipro Commercial India Ltd, and Troo Capital.

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The company allocated 1.6 crore equity shares to 17 funds at Rs 281 each, which is the upper limit of the price band. This allocation translates to a transaction size of Rs 449 crore. The IPO, valued at Rs 1,500 crore with a price range of Rs 267 to Rs 281 per share, will be open for public subscription from June 25-27. The initial share sale includes a fresh issuance of equity shares worth Rs 1,000 crore and an offer-for-sale (OFS) of shares worth Rs 500 crore by promoters.

Anchor Investors and Market Capitalisation

Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria will sell shares as part of the OFS. Broking firms estimate the company's market capitalisation to be around Rs 7,860 crore post-issue. Proceeds from the fresh issue amounting to Rs 720 crore will be utilised for debt repayment and general corporate purposes. As of December 2023, the company's total debt stood at approximately Rs 808 crore.

Half of the issue size is reserved for qualified institutional investors, while retail investors have been allocated 35 per cent and non-institutional investors the remaining 10 per cent. Investors can bid for a minimum of 53 shares and in multiples thereof. Allied Blenders and Distillers holds over an 8 per cent market share in the Indian-Made Foreign Liquor (IMFL) market by sales volumes in Fiscal 2023.

Product Portfolio and Market Presence

The company is involved in manufacturing, marketing, and selling alcoholic beverages both in India and internationally. Its product portfolio includes various brands of IMFL such as whisky, brandy, rum, and vodka. Notable brands under its umbrella include Officers Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka.

ICICI Securities Ltd, Nuvama Wealth Management Ltd, and ITI Capital Ltd are acting as the book-running lead managers for this issue. The equity shares are proposed to be listed on both BSE and NSE.

This strategic move aims to strengthen the company's financial position by reducing debt and supporting corporate activities. The IPO is expected to attract significant interest from various investor categories due to its robust market presence and diverse product range.