Alcobrew to raise funds through IPO

Alcobrew Distilleries plans to raise ₹258.3 crore by issuing fresh shares, while Romesh Pandita will be selling 1.8 crore shares via offer-for-sale route.

The company has proposed to list its shares on both NSE and BSE. Media reports say, Motilal Oswal Investment Advisors will act as the book-running lead manager, while KFin Technologies will serve as registrar for the issue.

As reported, the company may also consider raising funds up to ₹51.65 crore via pre-IPO placement before the public issue launch. If it mobilises funds through pre-IPO, the said amount will be reduced from the fresh component, the report added.

As per the prospectus, Alcobrew intends to utilise ₹140 crore from the IPO proceeds for prepayment and repayment of certain borrowings. As per reports, ₹28.9 crore will be allocated for constructing a visitor centre at Gamber Valley in Solan. A further ₹24.78 crore is earmarked for marketing expenses to support new product launches, with the remaining balance reserved for general corporate purposes.