Officer’s Choice whisky maker files draft papers for ₹2,000 crore IPO

Indian spirits manufacturer Allied Blenders & Distillers Pvt has submitted its draft red herring prospectus (DRHP) to the capital market regulator Securities and Exchange Board of India (SEBI) to raise funds for up to 2,000 crore through initial public offering (IPO).

The creator of Officer’s Choice Whiskey’s first stock sale of 2,000 crore, will consist of a new issue of 1,000 crore and an offer for sale (OFS) of up to shares worth 1,000 crore by promoters and shareholders.

Promoter Bina Kishore Chhabria will sell shares worth 500 crore via OFS, while promoters Resham Chhabria Jeetendra Hemdev and Neesha Kishore Chhabria shares worth 250 crore each, according to the company’s draft prospectus.

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.

The Company intends to use the proceeds of the IPO for the prepayment or scheduled repayment of all or part of the principal amount of certain loans made by the Company.

“We have incurred debt and the inability to meet repayment and other covenants in our financing agreements could adversely affect our business and financial condition. In addition, some of our financing agreements involve floating interest rates and an increase in interest rates could adversely affect our results of operations and financial condition,” the Mumbai-based distiller said in its offer document.

Allied Blenders and Distillers (ABD), India’s largest spirits company and maker of iconic products such as Officer’s Choice Whiskey and Sterling Reserve. Allied Blenders sells spirits ranging from whiskey and rum to brandy and vodka in 29 countries, according to its website. It owns nine bottling units, one distillation facility and more than 20 outsourced production sites.

Allied Blenders and Distillers’ operating income was 6,378 crore for fiscal 2021, while for nine months ending December 2021, revenue from operations 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 the offering. It is proposed to list the shares on BSE and NSE.

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