Allied Blenders and Distillers Limited (ABD) is an Indian manufacturer of Indian-made foreign liquor (IMFL) planning an initial public offering (IPO). Here’s a summary of the key details (as of June 19, 2024):

IPO Details

IPO Timeline

IPO Open Date:	June 24, 2024
IPO Close Date:	June 26, 2024
Basis of Allotment:	June 27, 2024
Refunds:	June 28, 2024
Credit to Demat Account:	June 28, 2024
IPO Listing Date:	July 1, 2024

About Company

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Allied Blenders and Distillers is an Indian liquor company founded in 2008. They make whisky, brandy, rum, and vodka, and also sell bottled water under different brands. Officer’s Choice Whisky, launched in 1988, is popular worldwide. The company exports to 22 countries and has a distillery in Telangana. They can produce 54.75 million liters of alcohol each year. Allied Blenders has 30 bottling facilities across India.

• ABD is the largest Indian-owned IMFL company and the third largest IMFL company in India based on annual sales volume.
• They manufacture, bottle, and distribute a wide range of whiskies, rums, brandies, and vodkas under various brands like Officer’s Choice, Sterling Reserve, and McDowell’s.
• ABD also has a presence in the export market, selling its products in over 22 countries.

POSITIVE

• Strong Brand Portfolio: ABD owns well-established brands like Officer’s Choice and Sterling Reserve, which enjoy brand loyalty in the Indian market.
• Large Distribution Network: Their extensive distribution network across India ensures wider market reach and product accessibility.
• Export Potential: The growing international demand for Indian liquor presents an opportunity for ABD to expand its export footprint.

NEGATIVE

• Government Regulation: The IMFL industry is subject to strict government regulations, including high taxes and licensing requirements, which can impact profitability.
• Competition: The Indian liquor industry is fiercely competitive, with established players and potential new entrants vying for market share.
• Dependence on Domestic Market: ABD’s major revenue comes from the domestic market, making them vulnerable to economic fluctuations in India.

So,how does Allied Blenders IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Aug 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	2,628.19	2,487.70	2,248.35	2,298.57
Revenue	3,176.52	7,116.75	7,208.17	6,397.81
Profit After Tax	2.85	1.60	1.48	2.51
Net Worth	407.85	406.10	404.10	381.78
Total Borrowing	726.77	780.82	846.91	954.74
Amount in ₹ Crore

FINANCIAL REVIEW

Positives:

• Revenue Growth: The company shows a steady increase in revenue (12.6% year-over-year) in the latest period (ending Aug 2023), indicating some business expansion.
• Profitability: While the Profit After Tax (PAT) figures seem relatively low, ABD has maintained profitability throughout the period.

Allied Blenders IPO Valuation :

Earning Per Share (EPS):	₹  per Equity Share
Price/Earning P/E Ratio:	N/A
Return on Net Worth (RoNW):	%
Net Asset Value (NAV):	₹ per Equity Share

Allied Blenders IPO – SWOT Analysis

Strengths

• Market Leader: ABD is the largest Indian-owned IMFL company and the third largest overall, indicating a strong brand presence and market share in India.
• Established Brand Portfolio: They own well-recognized brands like Officer’s Choice and Sterling Reserve, which benefit from customer loyalty and brand recognition.
• Extensive Distribution Network: ABD’s wide distribution network across India ensures their products are readily available to consumers, aiding in brand visibility and sales.
• Export Potential: The growing global demand for Indian liquor presents an opportunity for ABD to expand its export market share and diversify its revenue streams.
• Economies of Scale: As a large producer, ABD might benefit from economies of scale in production and distribution, potentially leading to cost advantages.

Weaknesses

• Dependence on Domestic Market: A significant portion of ABD’s revenue comes from the domestic market, making them vulnerable to economic downturns or changes in consumer preferences within India.
• Government Regulation: The IMFL industry is subject to strict government regulations, including high taxes, licensing requirements, and control over product pricing and distribution. These regulations can impact profitability and limit strategic flexibility.
• Competition: The Indian liquor market is fiercely competitive, with established players like United Spirits Limited and Diageo India vying for market share. New entrants could also pose a threat.
• Product Concentration: ABD might be overly reliant on a few core brands for a major portion of their revenue. Dependence on a limited product portfolio makes them vulnerable to changes in consumer preferences or new product offerings from competitors.

Opportunities

• Premiumization Trend: The growing consumer preference for premium liquor brands presents an opportunity for ABD to focus on premium offerings within their existing portfolio or develop new premium brands.
• Expanding Export Market: ABD can leverage their brand recognition and established products to expand their export footprint to new international markets with growing demand for Indian liquor.
• E-commerce Growth: The growing popularity of online alcohol sales in India can be an opportunity for ABD to expand their distribution channels and reach new customer segments.

Threats

• Public Health Concerns: Increasing government regulations or public health campaigns against alcohol consumption could negatively impact industry growth and ABD’s sales.
• Raw Material Price Fluctuations: Prices of key raw materials like grain and molasses can fluctuate, impacting ABD’s production costs and potentially squeezing profit margins.
• Taxation Changes: Changes in government tax policies or excise duties on IMFL can significantly impact profitability.

COMPETITIVE ANALYSIS: MARKET PEERS

Here are some of the key market peers of. Allied Blenders IPO :

Peers:

• United Spirits Limited (USL): The largest player in the Indian IMFL market, owning popular brands like McDowell’s, Johnnie Walker, and Black Dog.
• Diageo India: A subsidiary of Diageo plc, a global leader in alcoholic beverages. They own prominent brands like Royal Challenge, Smirnoff, and Black Label.
• Radico Khaitan Limited: A major player known for their flagship brand, 8PM Whisky, and other popular brands like Magic Moments and Antiquity.
• Globus Spirits Limited: A rapidly growing company known for their brand, YKD (阎罗王酒 Yán luó wáng jiǔ), a Chinese-style liquor, and other offerings like Aura Whisky and Antiquity Reserve Collection.

Allied Blenders IPO GMP

• Grey market premium as on DD-MM-YYYY = Rs / Share

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Allied Blenders IPO

🔴 Live Subscription Status 🔴

24/06/2024 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Total

FINAL TAKEAWAY

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