Shares of Tilaknagar Industries were up over 3% at Rs 55 on talk that Kishore Chhabria-led Allied Blenders and Distillers (ABD) is looking to acquire majority stake in the company. To fund the acquisition, ABD has started raising $200 million.
Tilaknagar has been keen to rope in investors to reduce debt, offloading stake is being seen as a move towards that end, according to a report in the Business Standard.
Tilaknagar Industries has a total debt of Rs 677 crore for the fiscal year ended March 2013.
The move will give ABD a strong foothold in the brandy market and, consequently, good presence in the southern part of the country, as that region is the biggest market for brandy in India.
The Mansion House brand from the Tilaknagar stable is the world’s second-best-selling brandy label.
ABD has three brandy brands — Kyron Premium Brandy, Lord & Master and Officer’s Choice.
