Company Background
Allied Blenders and Distillers Limited, initially incorporated as ‘You and Me Properties Private Limited’ on October 8, 2008, underwent several name changes and mergers to become what it is today. The company is involved in the manufacturing, marketing, and sale of alcoholic beverages, including whisky, brandy, rum, vodka, and other spirits. Its flagship brand, Officer’s Choice Whisky, was launched in 1988 and has grown to become a significant player in the mass premium whisky segment.
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IPO Details
| IPO Date | June 25, 2024 to June 27, 2024 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price Band | ₹267 to ₹281 per share |
| Lot Size | 53 Shares |
| Total Issue Size | 53,380,783 shares (aggregating up to ₹1,500.00 Cr) |
| Fresh Issue | 35,587,189 shares (aggregating up to ₹1,000.00 Cr) |
| Offer for Sale | 17,793,594 shares of ₹2 (aggregating up to ₹500.00 Cr) |
| Employee Discount | Rs 26 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 244,113,665 |
| Share holding post issue | 279,700,854 |
Key IPO Dates
- Opening Date: June 25, 2024
- Closing Date: June 27, 2024
- Finalization of Basis of Allotment: June 28, 2024 (Tentative)
- Initiation of Refunds: July 1, 2024 (Tentative)
- Transfer of Shares to Demat Account: July 1, 2024 (Tentative)
- Listing Date: July 2, 2024 (Tentative)
IPO Lot Size
Investors can bid for a minimum of 53 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 53 | ₹14,893 |
| Retail (Max) | 13 | 689 | ₹193,609 |
| S-HNI (Min) | 14 | 742 | ₹208,502 |
| S-HNI (Max) | 67 | 3,551 | ₹997,831 |
| B-HNI (Min) | 68 | 3,604 | ₹1,012,724 |
IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
IPO Promoter Holding
The Promoters of the company are 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.
| Share Holding Pre Issue | 96.21% |
| Share Holding Post Issue | 80.91% |
Proposed Use of Net Proceeds
- Payment or scheduled re-payment of certain outstanding borrowings.
- General corporate purposes.
Financial Performance (Consolidated)
| Metrics | FY23 | FY22 | FY21 | FY20 |
|---|---|---|---|---|
| Direct Expenditure (₹ Cr) | 2,120.46 | 1,742.07 | 5,628.14 | 7,223.76 |
| Gross Profit (₹ Cr) | 4,985.22 | 5,454.85 | 750.64 | 895.31 |
| Operating Expenditure (₹ Cr) | 4,788.32 | 5,246.12 | 537.02 | 645.22 |
| Operating Profit (₹ Cr) | 196.90 | 208.73 | 213.62 | 250.09 |
| Other Income (₹ Cr) | 11.07 | 11.25 | 19.04 | 16.55 |
| Interest (₹ Cr) | 135.81 | 146.25 | 142.13 | 180.26 |
| Depreciation (₹ Cr) | 55.14 | 58.64 | 58.74 | 69.42 |
| Profit Before Tax (₹ Cr) | 5.95 | 3.84 | 12.75 | 0.41 |
| Tax (₹ Cr) | 4.35 | 2.35 | 10.24 | -12.38 |
| Profit After Tax (₹ Cr) | 1.60 | 1.49 | 2.51 | 12.79 |
| EPS (unadj) (₹) | 0.07 | 0.06 | 0.11 | 0.54 |
Financial Performance (Standalone)
| Metrics | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|
| Direct Expenditure (₹ Cr) | 2,120.40 | 1,741.97 | 1,505.67 | 1,979.07 | 1,970.65 |
| Gross Profit (₹ Cr) | 4,985.28 | 5,454.95 | 4,873.11 | 6,139.99 | 6,964.02 |
| Operating Expenditure (₹ Cr) | 4,786.41 | 5,244.11 | 4,656.97 | 5,888.35 | 6,671.18 |
| Operating Profit (₹ Cr) | 198.87 | 210.84 | 216.14 | 251.64 | 292.84 |
| Other Income (₹ Cr) | 12.09 | 12.23 | 20.00 | 17.49 | 12.19 |
| Interest (₹ Cr) | 135.20 | 145.35 | 142.13 | 180.24 | 187.28 |
| Depreciation (₹ Cr) | 54.39 | 57.19 | 58.23 | 68.86 | 75.31 |
| Profit Before Tax (₹ Cr) | 9.28 | 8.30 | 15.78 | 2.54 | 30.25 |
| Tax (₹ Cr) | 4.34 | 2.37 | 10.07 | -12.37 | 19.93 |
| Profit After Tax (₹ Cr) | 4.94 | 5.93 | 5.71 | 14.91 | 10.32 |
| EPS (unadj) (₹) | 0.20 | 0.25 | 0.24 | 0.63 | 0.44 |
SWOT Analysis
Strengths
- Diverse Product Portfolio: The company has a broad range of products, including whisky, brandy, rum, vodka, and others, catering to various market segments.
- Established Brand: Officer’s Choice Whisky is a well-recognized brand with a significant market share in the mass premium whisky segment.
Weaknesses
- High Debt Levels: The company has significant borrowings, which may impact profitability and financial flexibility.
- Low Profit Margins: Despite high sales, the profit margins are relatively low, as indicated by the financial performance.
Opportunities
- Market Expansion: There is potential for growth in both domestic and international markets, leveraging the strong brand portfolio.
- Product Innovation: Introducing new products and variants can help capture a larger market share.
Threats
- Regulatory Changes: The alcoholic beverages industry is highly regulated, and any changes in regulations could impact operations.
- Competition: The company faces stiff competition from both domestic and international players in the alcoholic beverages market.
Contact Information
- Company Address: 394-C Lamington Chambers, Lamington Road 400004
- Phone: 91-22-6777 9777
- Email: [email protected]
- Website: www.abdindia.com
- Registrar: Link Intime India Pvt Ltd, C-101 247 Park, L B S Marg
- Phone: 91-22-49186000
- Fax: 91-22-49186060
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Disclaimer
This article is for informational purposes only and does not constitute financial advice. Potential investors should consult with their financial advisors before making any investment decisions. All information has been sourced from reliable publications and the company’s IPO prospectus. However, we do not guarantee the accuracy or completeness of this information.
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