Allied Blenders and Distillers IPO: IPO Key Details & Financial Statements

On the weekends, you hang out and drink beer in a club with your buddies. Do you know you can invest in businesses that produce and sell alcohol? Indeed, a corporation is planning an initial public offering (IPO) to list on exchanges. The company is referred to as “Allied Blenders and Distillers.”

In today’s blog, we will introduce you to Allied Blenders and Distillers, a new company planning to go public.

Allied Blenders Company Overview

One of the biggest companies in the alcoholic beverage sector is Allied Blenders and Distillers (ABD). Kishore Chhabria, formerly employed by Shaw Wallace, another Indian liquor producer, founded the business in 1988. The company initially aims to give Indians access to reasonably priced spirits. Launched in 1988, Officer’s Choice whiskey was the company’s initial product, and from 2016 to 2019, it was among the world’s best-selling whiskies in terms of yearly sales volume. As of December 2021, the company exported its goods to 22 nations, including North and South America, Africa, Asia, Europe, and the Middle East.

The company owns a distillery that is 25,000 square feet in build-up size and spans 74.95 acres in the Telangana district of Rangpur. Thirty two bottling facilities are essential to the manufacturing industry; some are run by them directly, while others are contracted. The company’s headquarters are located in Mumbai.

Product Portfolio

The company has a wide range of product portfolios, a description of which is mentioned below-

1. Whiskey – It features names like Srishti Premium Whiskey, Officers Choice, and famous white whiskey, among others.
2. Brandy – The has a wide selection of brandy, including Sterling Reserve Premium Cellar Brandy and Kyron Premium Brandy.
3. Rum – Jolly Roger rum is the product offered by the company.
4. Vodka – It also offers various vodkas.

Promotors

Kishore Rajaram Chhabria and Bina Kishore Chhabria are the company’s promoters, and they own roughly 52.2% of the company’s shares. Resham Chhabria and Jeetenda Hemdev are the company’s other two largest shareholders, owning about 24.05% of the business.

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Details of Allied Blenders IPO Issue

An initial public offering (IPO) by Allied Blenders and Distillers Limited would comprise a 500 crore offer for sale and a new 1000 crore issuance. The minimum lot size determined by the company is 53 shares, and the price range of the issuance is INR 267 to 281.

Allied Blenders IPO Key Details

Face Value of Share	INR 2
Price Band	INR 267 to INR 281
Employee Discount	INR 26 per share
Lot Size	53 Shares
Total Fresh Issue Size	1000 Crores.
Total offer for sale	500 Crores.

Allied Blenders IPO Timeline

IPO Open Date	25th June 2024
IPO Close Date	27th June 2024
Basis of Allotment	28th June 2024
Initiation of Refund & Credit of shares into Demat account	1st July 2024
Listing Date	2nd July 2024

Allied Blenders Allotment Size

Applicant	Market Lot	Share	Amount (INR)
Retail (Min)	1	53	INR 14,893
Retail (Max)	13	689	INR 193,609
High Net Worth Individual (Min)	14	742	INR 208,502
High Net Worth Individual (Max)	67	3,551	INR 997,831

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Allied Blenders IPO Objectives

The issue’s proceeds will be used for both general corporate operations and the repayment of loans that the company has obtained.

Allied Blenders IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Maximum 50%
NII Shares	Minimum 15%
Retail Shares Offered	Minimum 35%

Allied Blenders Financial Statements

Allied Blenders Balance Sheet

Metric	31st March 2023	31st March 2022	31st March 2021
Current Asset	1,798	1,457	1,410
Non-Current Asset	688	790	887
Current Liabilities	1916	1629	1685
Non-Current Liabilities	165	214	231
Total Equity	406	404	381

We may deduce from the above table that while non-current assets have been steadily declining over the last three financial years, current assets for the company are on the rise.

Allied Blenders Income Statement

Metric	31st March 2023	31st March 2022	31st March 2021
Total Income	7,116	7,208	6,397
Total Expenses	6,920	7,000	6,184
Profit before tax	5.9	3.8	12.7
Profit after tax	1.6	1.4	2.5

The company’s total income is increasing each year while the expenses have reduced in 2023 as compared to 2022. Even though total income is increasing, but due to increase in expenses, there are hardly any profits.

Allied Blenders Cash Flow Statement

Metric	31st March 2023	31st March 2022	31st March 2021
CFO	229	178	246
CFI	(18.3)	32.13	(59.3)
CFF	(202.8)	(255.7)	(216)

According to the above table, the company’s cash flow from operations has increased over the past fiscal year. Cash inflow due to investing activities has turned negative in 2023 and decrease in cash outflow was observed in financing activities in 2023 as compared to 2022.

Allied Blenders Key Performance Indicators

Particulars	31st March 2023	31st March 2022	31st March 2021
Return on Equity (%)	0.39	0.37	0.66
Current Ratio (x)	0.94	0.89	0.84
Inventory Turnover Ratio (Days)	45.13	42.09	53.63
Net Profit Ratio (%)	0.05	0.05	0.11
Debt to Equity Ratio (x)	1.92	2.10	2.50
Basic Earnings Per Share (EPS)	0.07	0.06	0.10

Strengths of Allied Blenders

1. Future growth in the Indian alcohol market is expected to be substantial due to rising disposable income levels among citizens.
2. When comparing the fiscal year 2023 to the fiscal year 2022, the company’s earnings after taxes grew.
3. The company can easily compete with the consumer because of its excellent brand recognition.
4. It provides a large selection of products to meet the needs of different customers.

Weaknesses of Allied Blenders

1. Businesses may see a decline in market share due to increased competition from domestic and foreign competitors.
2. Any economic downturn or a shift in consumer purchasing patterns could negatively impact sales and income.
3. Since the alcohol beverage industry is heavily regulated, any significant changes to government regulations could hurt business performance.
4. Consumer preferences may alter due to shifting health and lifestyle trends, which lowers the demand for alcoholic beverages.

Read Also: What is the IPO Allotment Process?

Conclusion

Allied Distillers and Blenders offer a fantastic chance to be involved in the expanding alcohol industry. They have declared a profit for the last three fiscal years yet their cash flow from financing and investing activities is negative. The company’s broad selection of alcoholic beverages contributes to the growth of its brand value. However, as we usually advise, consult your financial advisor before making any investment.

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