Bangalore: Kishore Chhabria’s Allied Blenders & Distillers (ABD) will finally go ahead with its IPO to raise about Rs 250 crore for funding its expansion plan which includes setting up of distilleries and launch of new brands.

ABD’s Executive Vice-Chairman and Chief Executive Officer, Deepak Roy, told Business Line that the company will require about Rs 350 crore for its expansion plans, which will be raised through a mix of public issue and bank loans.

“The balance sheet which carries some debt will disappear by the end of the year,” Roy said.

He said this should pave the way for the IPO for raising about Rs 250 crore, though the exact size will be decided nearer to the date of the offer.

Bottling plans

ABD wants to set up a primary distillery as well as between two and three bottling plants apart from its earlier announced plans to set up a greenfield distillery in West Bengal. It is waiting for a licence from the West Bengal Government to set up the plant, which will have a 100 KL per day capacity. The company will invest between Rs 75 crore and Rs 80 crore for setting up the plant.

Roy said ABD’s Officer’s Choice whisky is expected to sell about 12 million cases by the end of the current fiscal, which will make it part of the elite club of 11 other whisky brands which sell 12 million or more cases every year.

He said the company has also rolled out Gorbachev vodka nationally. ABD also plans to launch a premium rum which will be priced between 25 per cent and 30 per cent higher than the most expensive domestic rum brand currently.

He said Officer’s Choice whisky posted a growth of about 41 per cent last fiscal which was higher than the industry growth rate of about 18 per cent.

source: Sify Finance

Tags: Allied Blenders, have i been alloted NHPC IPO, IPO news, IPO status

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