India's Allied Blenders and Distillers files for $180 mln IPO

ICICI Securities

19/06/2024 17:08

BENGALURU, June 19 (Reuters) - Indian liquor company
Allied Blenders and Distillers (ABD) on Wednesday filed for an
initial public offering (IPO) to raise up to $180 million, amid
intensifying competition in a market dominated by the likes of
Diageo  DGE.L  and Pernod Ricard  PERP.PA . 
    ABD, which sells whisky brands such as Officer's Choice and
Sterling Reserve in India's estimated $33 billion spirits
market, said it would issue new shares worth up to 10 billion
rupees ($120 million) as a part of the offering. 
    The company aims to use proceeds from that sale to reduce
some of its outstanding borrowings, it said. 
    Meanwhile, existing shareholders in the firm will sell
shares worth up to 5 billion rupees, ABD added. 
    As of the end of March 2023, the liquor maker's total
liabilities had risen roughly 13% year-over-year. Over the same
period, its consolidated revenue dipped 1.3% while profit after
tax increased 8.5%. 
    ICICI Securities, Nuvama and ITI Capital are book-running
lead managers to ABD's IPO. 
    India has smashed records at home and globally for the
number of its IPOs, at a time when the domestic equity market
has surged to all-time highs on economic growth prospects and a
vast consumer base, making it an attractive destination for
companies and investors.
    Last week, South Korean carmaker Hyundai Motor  005380.KS 
filed draft papers for listing its Indian unit, which could be
the country's largest public flotation.    
    ($1 = 83.4135 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by Mark
Potter)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))