Indian Alcoholic Beverages Company, United Spirits Board approval has been received for investment of Rs 31.50 crore in Shilp gin-maker Now Spirits & Beverages. The transaction will be done by buying a portion of equity shares from existing shareholders and subscribing to Compulsory Convertible Preference Shares (CCPS) and equivalent shares.
Under the deal, United Spirits will subscribe to 8,094 CCPS of NAO and 10 equity shares equivalent to 14.29% of its issued and paid-up share capital on a fully diluted basis. In addition, the Diageo-backed company will buy 4,660 equity shares of NAO, equivalent to 8.21%, from existing shareholders.
In all, United Spirits will hold 22.50% equity shares of NAO, aggregating to Rs 31.50 crore. The transaction is expected to be completed on or before April 30, 2022.
Through the investment, United Spirits forays into the Indian Provence premium craft gin segment, acclaimed by Gordon and Tanqueray’s world-class premium and luxury gin portfolio.
Established in January 2010, NAO has successfully developed an Indian Craft Gin with global appeal. In a short span of 2-3 years, it has become one of the top emerging gin brands in India. Its products – Greater Than and Hapusa have won awards in India and internationally. About 85% of its revenue comes from India. Additionally, NAO’s products 8 . are available in
Countries including the US and the United Kingdom. As of March 31, 2021, the turnover and net worth of NAO was 14.07 crore and 21.31 crores respectively.
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