Monika Alcobev IPO Analysis: A Deep Dive into Financials, Offer Details and Investment Potential

Monika Alcobev Limited is a significant player in the imported liquor segment in India, offering a diverse range of premium and luxury alcoholic beverages. With a strong presence in distribution, sales, and marketing across India and the Indian Subcontinent, the company has built a robust supply chain including duty-free travel retail stores.

This IPO has generated considerable interest due to the company’s strong fundamentals, leadership, and consistent growth in revenues and profitability.

IPO Details and Structure

The Monika Alcobev IPO is a book-built issue of ₹165.63 Crores, comprising:

• Fresh Issue: 47.91 lakh equity shares aggregating to ₹137.02 Crores

• Offer for Sale (OFS): 10.00 lakh shares aggregating to ₹28.60 Crores

The IPO opened for subscription on July 16, 2025, and will close on July 18, 2025. The allotment is expected on July 21, with the tentative listing date being July 23, 2025, on BSE SME platform.

The price band is fixed at ₹271 to ₹286 per equity share, and the market capitalisation at the upper price band stands at ₹613.46 Crores.

The lot size is 400 shares, and investors must apply for a minimum of 2 lots (800 shares) which amounts to ₹2,28,800.

IPO Lead Managers and Market Maker

• Book Running Lead Manager: Marwadi Chandarana Intermediaries Brokers Private Limited

• Registrar: MUFG Intime India Private Limited

• Market Maker: Bhansali Value Creations Private Limited

These reputed intermediaries bring added trust to the offering.

Grey Market Premium (GMP) Trends

As of the last update, the GMP for Monika Alcobev IPO is ₹24, indicating an expected listing price of ₹310, which translates into an 8.39% premium over the upper end of the price band.

It is important to note that GMP is unofficial and fluctuates based on demand-supply dynamics in the unregulated grey market. It is not a reliable basis for investment decision-making but does offer sentiment cues.

Anchor Investor Allotment

Monika Alcobev raised ₹46.05 Crores from anchor investors by allocating 16,10,400 equity shares at ₹286 per share. This pre-subscription adds confidence and reflects institutional trust in the company.

Real-Time Subscription Status

As of 02:30 PM on July 18, 2025, Monika Alcobev IPO has been subscribed 2.73 times on its final day. This reflects a healthy investor response and increases the likelihood of full subscription.

Financial Highlights

The company has reported consistent and solid growth:

• Revenue from Operations:

  • FY25: ₹23,835.61 Lakh

  • FY24: ₹19,127.64 Lakh

  • FY23: ₹14,035.84 Lakh

• EBITDA:

  • FY25: ₹4,972.71 Lakh

  • FY24: ₹3,422.06 Lakh

  • FY23: ₹2,525.34 Lakh

• Profit After Tax (PAT):

  • FY25: ₹2,311.35 Lakh

  • FY24: ₹1,659.63 Lakh

  • FY23: ₹1,302.56 Lakh

This demonstrates strong operational efficiency and a steady uptrend in profitability.

Key Financial Ratios (FY24)

• Pre-Issue EPS: ₹13.94

• Post-Issue EPS: ₹10.78

• Pre-Issue P/E: 20.51x

• Post-Issue P/E: 26.54x

• Return on Capital Employed (ROCE): 16.21%

• Return on Equity (ROE): 29.91%

• Return on Net Worth (RoNW): 24.07%

These ratios indicate that the IPO is fairly valued given the company’s consistent financial performance.

Objectives of the IPO

The company plans to utilize the Net Proceeds from the fresh issue for the following purposes:

1. Funding working capital requirements – ₹10,063.83 Lakhs

2. Pre-payment or repayment of certain borrowings – ₹1,145.00 Lakhs

3. General corporate purposes

This strategic use of funds will further strengthen the company’s operations and growth trajectory.

Leadership and Promoter Experience

Monika Alcobev is spearheaded by Bhimji Nanji Patel and Kunal Bhimji Patel, who bring over 30 years of combined experience in the liquor industry. Their leadership has helped the company secure a leading position in luxury alcohol imports and distribution in India.

Industry Outlook and Competitive Advantage

The premium and luxury alcohol segment in India is on a growth trajectory, driven by:

• Increasing urbanization and disposable incomes

• Shifting consumer preferences towards premium brands

• Expanding presence of global liquor brands in India

Monika Alcobev’s extensive product range, well-established distribution network, and strategic presence in travel retail duty-free channels give it a significant edge over competitors.

Allotment Process – How to Check

To check IPO allotment on July 21:

• Visit the Registrar’s website (MUFG Intime India)

• Select “Monika Alcobev Limited IPO” from the dropdown

• Enter Application Number, PAN, or DP Client ID

• Click submit to view status

This step ensures investors are well-informed of their allotment in time for the listing.

Should You Invest in Monika Alcobev IPO?

Here are some points that work in favour of the IPO:

• Strong revenue and PAT growth over 3 years

• Efficient operations with healthy ROE and ROCE

• Robust distribution network and leadership with deep industry experience

• GMP showing possible listing gains

• Rising demand for luxury and premium alcohol brands in India

Our verdict: Investors may consider applying for listing gains, especially given the company’s financial resilience and strategic positioning in a high-margin niche.

Conclusion

The Monika Alcobev IPO offers a solid mix of financial strength, experienced management, a strong growth sector, and investor interest, as reflected in both the subscription data and anchor investments. With a GMP of ₹24 and strong fundamentals, this IPO appears to be a good bet for short-term listing gains and long-term potential in the premium beverage segment.

Stay updated on further developments post-listing to evaluate secondary market performance and decide on long-term investment strategies.

Disclaimer:
This analysis is for educational and informational purposes only. It does not constitute investment advice or a solicitation to buy or sell any securities. Investors should perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions. All data is based on information available as of the publication date and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Indiqube Spaces, GNG Electronics, Brigade Hotel Ventures, TSC India, Patel Chem Specialities, Monarch Surveyors & Engineering Consultants, TSC India, Swastika Castal, Savy Infra, NSDL.

The Current active IPO are Monika Alcobev.

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