Tilaknagar Industries on Tuesday said that its board had approved a preferential issue of securities, equity shares and warrants, amounting to approximately Rs 2,296 crore to fund the acquisition of the Imperial Blue business. The issue price of Rs 382 per security is in compliance with the Sebi’s pricing regulations, it said.
India’s biggest liquor M&A deal
Last week, Tilaknagar Industries announced signing a definitive agreement to acquire the country’s third-largest whisky brand for an enterprise value of Rs 4,150 crore from Pernod Ricard India. The deal, the largest by an Indian alcoholic beverages company, will fast-track Tilaknagar’s foray into the whisky segment. A total of 44 investors are participating in the issue, including promoters and existing investors. Of them, nine investors are subscribing through equity shares, contributing approximately Rs 549 crore, and the remaining through warrants, raising around Rs 1,747 crore. This includes the promoter group led by Amit Dahanukar, CMD of the company, who will subscribe to warrants worth Rs 306 crore, the company said.
As per the terms, Rs 437 crore, or 25% of the issue size, will be payable at the time of allotment of warrants, while the balance Rs 1,310 crore will be received upon conversion into equity shares.
Expanding footprint across whisky and brandy
The deal will also significantly expand Tilaknagar’s distribution reach, across both brandy and whisky, with a combined volume of 34 million cases. Mansion House, which is India’s largest-selling brandy, has volume sales of about 11-12 million cases, industry experts said.
“Having achieved leadership in the brandy segment, it is now time for us to broaden our portfolio and cater to India’s diverse and evolving consumer base. While we continue to grow our business organically, this strategic acquisition allows us to enter the whisky category with one of the country’s most trusted and admired brands,” Amit Dahanukar, CMD, Tilaknagar Industries, said.
Deutsche Bank and Avendus Capital acted as financial advisors, with Avendus Capital also serving as the exclusive financing arranger to Tilaknagar. Crawford Bayley & Co. and WS Kane & Co. acted as legal counsels while Deloitte served as the diligence advisor to the company.
Tilaknagar Industries reported revenue of Rs 1,405 crore and Ebitda of Rs 226 crore for the year ended March 2025.