Liquor giant ABD to file Rs 2,000cr IPO application this month
Mumbai: Allied Blenders & Distillers (ABD), the largest domestic liquor company, is expected to file for an IPO of Rs 2,000 crore later this month at a valuation of nearly Rs 20,000 crore, or $2.5 billion. The company has appointed ICICI Securities, Axis Capital, Kotak Mahindra Capital and JM Financial to manage the public offering.
The IPO will be a combination of a new fundraising by the company and a sell offer by some of its promoters, in a 50/50 ratio, sources said. It will use Rs 1,000 crore to pay off part of its debt and a certain amount to expand its business, including launching new brands, they added.
ABD, the makers of popular brands like Officer’s Choice and Sterling Reserve, had been planning to go public for some years. ABD is the largest local alcohol company in India and the third largest overall, behind global players Diageo and Pernod Ricard, according to investment bankers.
A text message sent to Kishore Chhabria, president and principal promoter of ABD, elicited no response until press time. Once listed, ABD will be the first listing of a brewery and distiller in over a decade. According to BSE data, Globus Spirits was the last such company to go public in 2009.
In preparation for an IPO, ABD was restructuring its board of directors. In July last year, former United Breweries chief executive Shekhar Ramamurthy joined ABD as executive vice president. And in April this year, Nasser Munjee, former managing director of IDFC and board member of several leading Indian companies, joined ABD as an independent director. Bala Swaminathan, an accomplished accountant and business leader, also joined the company this year as an independent director.
ABD began operations in 1988 with Officer’s Choice as its flagship brand. Currently, it is the third best-selling whiskey in the world. The company currently manufactures and markets around 12 brands in spirits categories such as whisky, brandy, rum and vodka. In 2017, ABD made a foray into the premium segment with Sterling Reserve. A premium whiskey brand, it was ranked in 2019 as the fastest growing spirit in the world. It continues to be one of the fastest growing brands in the world by volume. Last year, a report by major global financial firm Credit Suisse ranked ABD among India’s 100 unicorns.
The IPO will be a combination of a new fundraising by the company and a sell offer by some of its promoters, in a 50/50 ratio, sources said. It will use Rs 1,000 crore to pay off part of its debt and a certain amount to expand its business, including launching new brands, they added.
ABD, the makers of popular brands like Officer’s Choice and Sterling Reserve, had been planning to go public for some years. ABD is the largest local alcohol company in India and the third largest overall, behind global players Diageo and Pernod Ricard, according to investment bankers.
A text message sent to Kishore Chhabria, president and principal promoter of ABD, elicited no response until press time. Once listed, ABD will be the first listing of a brewery and distiller in over a decade. According to BSE data, Globus Spirits was the last such company to go public in 2009.
In preparation for an IPO, ABD was restructuring its board of directors. In July last year, former United Breweries chief executive Shekhar Ramamurthy joined ABD as executive vice president. And in April this year, Nasser Munjee, former managing director of IDFC and board member of several leading Indian companies, joined ABD as an independent director. Bala Swaminathan, an accomplished accountant and business leader, also joined the company this year as an independent director.
ABD began operations in 1988 with Officer’s Choice as its flagship brand. Currently, it is the third best-selling whiskey in the world. The company currently manufactures and markets around 12 brands in spirits categories such as whisky, brandy, rum and vodka. In 2017, ABD made a foray into the premium segment with Sterling Reserve. A premium whiskey brand, it was ranked in 2019 as the fastest growing spirit in the world. It continues to be one of the fastest growing brands in the world by volume. Last year, a report by major global financial firm Credit Suisse ranked ABD among India’s 100 unicorns.