Allied Blenders & Distillers IPO: The Good and The Bad 

Published 24th June 2024

About Allied Blenders & Distillers

It is a leading alcohol player that primarily produces whiskey with a market share of 11.8% in the segment. Its top brands include Officer’s Choice & Sterling Reserve.

IPO details

IPO details

Total IPO size (Rs cr) 1500   Offer for sale (Rs cr) 500   Fresh issue (Rs cr) 1000   Price band (Rs) 267-281   Subscription dates June   25-27, 2024   Purpose of issue Repayment   of debt

Post IPO

Post IPO

7860   Net worth (Rs cr) 1409   Promoter holding (%) 80.9   Price/earnings ratio (P/E) 2665   Price/book ratio (P/B) 5.6M-cap (Rs cr)

Financial history

Financial history

Key financials (Rs cr) 2Y CAGR (%) TTM FY23 FY22 FY21   Revenue 5.5 7628 7106 7197 6379   EBIT (ex OI) -2 179 130 138 135   PAT -20.1 2.9 1.6 1.5 2.5   Net worth 3.1 409 406 404 382   Total debt -9.8 809 793 863 975

EBIT (ex OI) is earnings before interest and tax (excluding other income)  PAT is profit after tax  TTM is 12-months ending December 2023

Key ratios

Key ratios

Ratios 3Y median TTM FY23 FY22 FY21   ROE (%) 0.5 0.7 0.4 0.4 0.7   ROCE (%) 11.3 15.1 11.4 11.4 11.1   EBIT margin (%) 2 2.3 1.8 1.9 2.1   Debt-to-equity 2.2 2 2 2.1 2.6

ROE is return on equity    ROCE   is return on capital employed

The Good

The company enjoys strong brand recall, especially in the whiskey segment, which dominates the Indian-made foreign liquor market (IMFL).

The Good

The company stands to benefit from stable demand due to the habitual nature of its products, and the rising trend of premiumisation in the overall industry.

The bad

Industry’s high regulatory nature is among many risks that plague the company. To read the complete risk report, head to our story from the link below.