Allied Blenders and Distillers are coming up with an IPO worth INR 1,500 crores, consisting of a fresh issue of shares worth INR 1000 crores and an offer to sell 500 crores shares. The company aims to prepay certain outstanding borrowings and general corporate purposes.
Allied Blenders and Distillers IPO – Important Dates
| Allied Blenders & Distillers IPO Date | June 25, 2024 to June 27, 2024 |
| Allied Blenders & Distillers IPO Listing Date | July 2, 2024 |
| Allied Blenders & Distillers IPO Price | INR 267-281 per share |
| Allied Blenders & Distillers IPO Lot Size | 53 Shares |
| Allied Blenders & Distillers IPO Total Issue Size | INR 1500 crores |
| Allied Blenders & Distillers IPO Basis of Allotment | June 28, 2024 |
| Allied Blenders & Distillers IPO Initiation of Refunds | July 1, 2024 |
| Allied Blenders & Distillers IPO Credit of Shares to Demat | July 1, 2024 |
| Allied Blenders & Distillers IPO Issue Type | Book Built Issue IPO |
| Allied Blenders & Distillers IPO Listing At | BSE, NSE |
Allied Blenders and Distillers Limited IPO – Company Profile
Allied Blenders and Distillers Limited is the largest Indian-owned, Indian-made foreign liquor (“IMFL”) company and India’s third largest IMFL company. The company is one of India’s only four spirits companies with a pan-India sales and distribution footprint and a leading exporter of IMFL.
A leading player in India’s alcoholic beverages market, the company holds an 8.2% IMFL segment share, operating nationwide with 12 regional offices. Its extensive sales network spans 30 states, 64,001 domestic outlets, and 22 international markets.
The company’s brand strength shines with awards and lifestyle-oriented positioning emphasizing awareness, product appeal, and quality. Past initiatives like sports league partnerships and celebrity endorsements drive significant business growth and financial performance.
Allied Blenders and Distillers Limited IPO – Fundamental Analysis
Allied Blenders and Distillers Limited’s financial analysis reveals a mixed performance. Revenue declined from March 2022 to December 2023, falling short of the previous year’s benchmark. Profitability, EPS, and RoNW decreased, raising investor concern.
- Revenue Trend: The revenue increased from ₹89,345.97 million in March 2022 to ₹81,190.65 million in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 63,787.76 million, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has decreased from ₹152.01 million in March 2022 to ₹25.08 million by December 2023. The decline in profitability could be a source of concern for investors.
- Earnings per Share (EPS): The diluted EPS has also decreased from ₹0.65 in March 2022 to ₹0.10 by December 2023, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 5.21% to 0.66%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Allied Blenders & Distillers Ltd IPO Financial Analysis
| Particular | As of 31 March 2019 | As of 31 March 2020 | As of 31 March 2021 |
| Revenue (₹ in Million) | 89,345.97 | 81,190.65 | 63,787.76 |
| Equity (₹ in Million) | 2,918.17 | 3,796.19 | 3,817.82 |
| Expenses (₹ in Million) | 86,298.88 | 78,855.69 | 61,848.16 |
| Profit and Loss After Tax (₹ in Million) | 152.01 | 127.93 | 25.08 |
| RoNW (%) | 5.21 | 3.37 | 0.66 |
| NAV per Equity Share (₹) | 12.39 | 15.66 | 15.75 |
| Diluted EPS only (₹) | 0.65 | 0.53 | 0.10 |
| Total Assets (in millions) | 26,315.92 | 24,003.65 | 22,985.68 |
| Total Liabilities (in millions) | 23,397.74 | 20,207.46 | 19,167.86 |
| Debt Equity Ratio | 4.58 | 2.72 | 2.50 |
| Current Ratio (in time) | 0.85 | 0.87 | 0.84 |
| Inventory Turnover Ratio | 6.93 | 7.64 | 6.62 |
Allied Blenders and Distillers Limited IPO Peer Comparison
Allied Blenders and Distillers Limited is a significant player in alcoholic beverages. United Spirits Limited leads with a diverse portfolio. Radico Khaitan Limited focuses on quality and innovation. Globus Spirits Limited emphasizes growth and sustainability.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Allied Blenders and Distillers Limited | 63,978.12 | 2 | NA | 0.11 | 0.10 | 0.66 | 15.75 |
| United Spirits Limited | 2,74,581.00 | 2 | 142.62 | 5.41 | 5.41 | 8.92 | 55.86 |
| Radico Khaitan Limited | 1,05,180.01 | 2 | 39.20 | 20.75 | 20.74 | 14.75 | 134.23 |
| Globus Spirits Limited | 16,786.90 | 10 | 19.37 | 50.00 | 50.00 | 24.38 | 205.10 |
Allied Blenders & Distillers Ltd IPO Objective
The main objective of Allied Blenders and Distillers Limited is to manage its debt effectively by implementing prepayment or scheduled repayment strategies for a portion of its outstanding borrowings.
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company: The company intends to utilize INR 708.98 crores from net proceeds to prepay loans, considering factors like costs, lender conditions, and legal compliance, aiming to reduce debt and foster business growth.
- General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including working capital, brand promotion, subsidiary investments, and other ordinary business activities. In addition, businesses may allocate funds for various necessary costs incurred in their daily operations.
Allied Blenders IPO Risks And Challenges
Allied Blenders & Distillers Limited’s risk includes compliance issues in state tenders and advertising restrictions, demanding significant investments. In the competitive IMFL industry, effective market responsiveness is crucial for sustained success.
- ABD Limited faces risks in state tenders, risking non-compliance penalties. Advertising restrictions hinder brand promotion, demanding substantial investments. Effective market responsiveness is critical for sustained success in the fiercely competitive IMFL industry, led by significant rivals.
- Participation in state beverage corporation tenders poses challenges, including potential non-compliance with stringent contract terms, such as order-based supply, forfeiture risks, transit losses, quality standards, excise duty advances, delayed payments, and penalties for unsold stock. Regulatory audits and tender delays further threaten business stability.
- Restrictions on alcoholic beverage advertising, driven by public concerns on alcohol-related issues, hinder brand promotion. Adhering to industry norms amid intense competition may demand substantial investments. Evolving regulations pose a risk, potentially impacting brand visibility, consumer goodwill, and financial performance.
Allied Blenders & Distillers Ltd IPO – Industry & Market Potential
The Indian alcoholic beverage market is evenly distributed among country liquor, Indian Made Foreign Liquor (IMFL), and beer, with minor contributions from wines and imported spirits. Projected growth anticipates a volume surpassing 1,200 million cases by Fiscal 2025.
In Fiscal 2021, flavored local alcoholic beverages, called country or Indian-made Indian liquor (IMIL), constituted nearly one-third of the alcohol market by volume. Tailored to regional tastes, with popular fruit and masala flavors, IMIL targets the price-sensitive, lower-income demographic, enjoying widespread acceptance in rural areas.
The Indian alcoholic beverage industry thrives due to favorable demographics, rising incomes, and evolving societal norms. Urbanization, a growing middle class, and changing lifestyles drive consumption towards higher-quality offerings, ensuring a positive outlook.
Allied Blenders and Distillers Limited IPO – Type of Offer
Allied Blenders & Distillers plans a fresh issue of shares, seeking INR 1000 crores to repay outstanding loans and general corporate needs. Additionally, the company proposes an offer for sale, intending to sell 500 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1000 crores. The company intends to utilize the proceeds from the fresh issue for the prepayment of certain outstanding borrowings availed by the company and general corporate purposes.
- Offer for sale: ABD Limited is offering to sell 500 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Bina Kishore Chhabria | 5000 |
| Resham Chhabria Jeetendra Hemdev | 2500 |
Allied Blenders & Distillers Ltd IPO Offer Size
The offer size of Allied Blenders & Distillers is INR 1,500 crores, consisting of a fresh issue of INR 1000 crores and an offer to sell 500 crore shares. The company seeks funds to prepay outstanding borrowings and general corporate purposes.
Allied Blenders and Distillers Limited IPO Allotment Structure
Allied Blenders & Distillers allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs
How to apply for an Allied Blenders IPO?
To apply for the Allied Blenders & Distillers IPO through Alice Blue, you would typically follow these steps:
1.Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Allied Blenders & Distillers IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Allied Blenders & Distillers Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Allied Blenders IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Allied Blenders & Distillers IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Allied Blenders & Distillers IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Allied Blenders & Distillers IPO:
Registrar’s Website: Visit the website of Link In Time India Private Limited, the registrar of the Allied Blenders & Distillers IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Allied Blenders and Distillers IPO Offer Registrar
The registrar for the Allied Blenders & Distillers IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C 101, 247 Park, L.B.S. Marg
Vikhroli (West), Mumbai –400 083
Maharashtra, India
Telephone: 022 4918 620087
Email: [email protected]
Website: www.linkintime.co.in
Allied Blenders & Distillers IPO FAQs
The allotment date of the Allied Blenders & Distillers is June 28, 2024.
The price band of the issue is INR 267-281 per share.
The offer size of Allied Blenders & Distillers is INR 1,500 crores, consisting of a fresh issue of INR 1000 crores and an offer to sell 500 crore shares. The company seeks funds to prepay outstanding borrowings and general corporate purposes.
The listing date of Allied Blenders & Distillers is July 2, 2024.
