 "Allied Blenders close to raising $100 million")
Of the $100 million, ABD would raise $50 million through the private equity route, while the rest would be accounted for by debt. It is understood Ambit Capital has been mandated to manage the fund-raising.
Ambit Capital was one of the investment bankers that had advised UB Group Chairman Vijay Mallya on the $2.1-billion stake sale in United Spirits to Diageo.
ABD, which owns the world's largest selling whisky brand (Officer's Choice), has been aggressively expanding operations. This would be further boosted when the company finalises its fund-raising plans, in the works for the past 12-14 months. Deepak Roy, executive vice-chairman and chief executive, ABD, told Business Standard now, these plans were in the final stages. He added ABD would be aggressively looking at premiumising its offerings.
ABD is being wooed by global spirits majors interested in acquiring stake in the company and gaining an entry into India, one of the fastest growing spirits markets. "We are getting various offers from global players. But we are not looking at that option right now. We feel we can build further value in the franchise on our own," Roy said.
Earlier, Diageo had sought to consolidate its holding in United Spirits. The market is rife with speculation other such transactions are also in the works, especially in the case of fast-emerging mid-level spirits companies.
It is expected at the end of the current financial year, ABD's volumes would stand at 20.5 million cases. For the next financial year, the company is targeting volumes of 24 million cases. In 2013-14, it aims to record volume growth of 15 per cent for the Officer's Choice brand. This financial year, ABD's revenues are estimated at Rs 1,800 crore.
Early last year, the company had launched the Officer's Choice-Blue brand, volumes of which exceeded a million in a year. In 2013-14, the company would further push this brand.