Monika Alcobev Limited, a leading player in the imported liquor sector, has launched its Initial Public Offering (IPO) on July 16, 2025. This Book Built Issue comes with a total value of ₹165.63 Crores, comprising a Fresh Issue of 47.91 lakh shares aggregating to ₹137.02 Crores and an Offer for Sale of 10 lakh shares amounting to ₹28.6 Crores.

The IPO subscription period is scheduled from July 16 to July 18, 2025, and the shares are set to be listed on the BSE SME platform on July 23, 2025. This IPO has already generated considerable attention from retail and institutional investors due to the company's financial track record, its presence in the high-margin luxury liquor segment, and favourable market sentiment reflected by the Grey Market Premium.

IPO Pricing and Key Details

The price band for the Monika Alcobev IPO is set at ₹271 to ₹286 per equity share. The market capitalisation of the company at the upper price band of ₹286 per share stands at approximately ₹613.46 Crores. The lot size for retail investors is 400 shares, and the minimum investment is two lots (800 shares), amounting to ₹2,28,800.

Marwadi Chandarana Intermediaries Brokers Private Limited acts as the Book Running Lead Manager (BRLM), while MUFG Intime India Private Limited serves as the Registrar. The Market Maker for the IPO is Bhansali Value Creations Private Limited.

Monika Alcobev's Business Overview

Monika Alcobev is renowned for its role in the importation, distribution, sales, and marketing of premium and luxury alcoholic beverages, including spirits, wines, and liqueurs. The company operates not only across India but also in the Indian Subcontinent, and its reach includes Travel Retail (Duty-Free Shops).

One of the company's strengths lies in its robust supply chain and distribution network, which enables it to efficiently handle the logistics and regulatory requirements of the liquor trade—a sector that is highly regulated and competitive.

Monika Alcobev is managed by an experienced team led by Promoters Bhimji Nanji Patel and Kunal Bhimji Patel, who collectively bring over three decades of experience in the industry. Their leadership has enabled the company to establish strong brand associations and long-term relationships with international liquor companies.

Financial Performance and Key Metrics

Monika Alcobev has showcased a consistent growth trajectory over the past few years:

• Revenue from operations

  • FY23: ₹14,035.84 Lakh

  • FY24: ₹19,127.64 Lakh

  • FY25: ₹23,835.61 Lakh

• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)

  • FY23: ₹2,525.34 Lakh

  • FY24: ₹3,422.06 Lakh

  • FY25: ₹4,972.71 Lakh

• Profit After Tax (PAT)

  • FY23: ₹1,302.56 Lakh

  • FY24: ₹1,659.63 Lakh

  • FY25: ₹2,311.35 Lakh

These numbers indicate a strong financial foundation and increasing profitability. The company's Pre-Issue EPS (Earnings Per Share) for FY24 is ₹13.94, and Post-Issue EPS is ₹10.78. The P/E ratio at the IPO price is 20.51x (pre-issue) and 26.54x (post-issue), which is considered fairly priced based on industry standards.

Return on Capital Employed (ROCE) for FY24 stands at 16.21%, Return on Equity (ROE) at 29.91%, and Return on Net Worth (RoNW) at 24.07%, further solidifying investor confidence in the company’s management and capital efficiency.

Utilisation of IPO Proceeds

The company plans to use the Net Proceeds from the Fresh Issue as follows:

1. ₹10,063.83 Lakhs for working capital requirements

2. ₹1,145.00 Lakhs for repayment/pre-payment of borrowings

3. Balance for general corporate purposes

This reflects a balanced approach by the company to scale operations, reduce financial leverage, and create long-term shareholder value.

Grey Market Premium (GMP) and Listing Expectations

As per the latest update on July 14, 2025, the Grey Market Premium (GMP) for Monika Alcobev IPO stands at ₹24 per share, implying an expected listing price of ₹310, which is an 8.39% gain over the upper price band of ₹286. However, it’s essential to understand that GMP is unofficial and not regulated, and does not guarantee listing gains.

The GMP trend suggests a moderate positive sentiment in the market, likely due to the company's strong financials, leadership, and presence in a high-margin industry.

Live Subscription Status

On the final day of subscription (July 18, 2025) at 2:30 PM, the IPO was subscribed 2.73 times, which indicates healthy demand, especially considering the SME platform listing.

Please note, market maker reservations and QIB allotments (including Anchor Investors) are included in the overall subscription numbers and are not shown separately.

Anchor Investor Participation

Ahead of the public issue, Monika Alcobev raised ₹46.05 Crores from Anchor Investors by allocating 16,10,400 equity shares at the upper price band of ₹286. This participation is often viewed as a strong vote of confidence by institutional investors in the company’s potential.

Allotment Date and Listing Guide

The allotment of shares is scheduled for Monday, July 21, 2025. Investors can check the status of their allotment online using:

• PAN or Application Number or DP ID

• On the official website of the Registrar MUFG Intime India Pvt Ltd

The expected listing date is July 23, 2025, subject to final confirmations from the exchange.

Valuation and Recommendation

Given the company’s consistent growth, robust margins, efficient capital deployment, and sound corporate governance, the IPO offers a fairly valued entry into the fast-growing luxury liquor sector.

While Grey Market Premium suggests listing gains, the long-term prospects also look encouraging due to:

• Increasing disposable income and rising demand for premium and imported spirits in India

• Strong distribution capabilities across India and in duty-free retail

• Experienced management team with strategic vision

Conclusion

Monika Alcobev’s IPO is attracting positive investor interest both for short-term listing gains and long-term portfolio diversification. Given its impressive financial performance, strong business fundamentals, and positive industry outlook, this IPO is worth considering, especially for investors looking to gain exposure to a high-margin niche sector like imported premium liquor.

Recommendation: APPLY for listing gains and long-term growth potential.

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.

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