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B9 Beverages, Maker of Bira 91, Plans Initial Public Offering in 2026

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Published Date: 22 Jul 2024Updated Date: 31 Dec 20246 mins readBy MOFSL

About & Company IPO Plan


B9 Beverages Ltd, the craft beer brand Bira 91 maker, is gearing up for an initial public offering (IPO) expected in 2026. The company, which claims a 5% market share in crucial regions, is the fourth-largest beer producer in India. B9 Beverages has enlisted Morgan Stanley to assist in its pre-IPO preparations. CEO Ankur Jain confirmed the IPO plans, stating that they hinge on the company meeting certain operational benchmarks.
Bira 91 produces a range of beer variants, including Bira White, Gold, Bira Blonde, and Boom Super Strong, among others. The company operates in more than 1,000 towns across 25 countries and brews its beer at six manufacturing units in India. In December 2022, the company became a public entity and rebranded as B9 Beverages Ltd, as shown in regulatory filings. Founded in 2015 by Ankur Jain, B9 Beverages is known for its craft beer, ciders, and seltzers.

Funding


Bira 91 has secured $25 million in External Commercial Borrowing (ECB) from existing investor Kirin Holdings, bringing its total fundraising to $50 million in the past three months. In March, it raised $25 million from Tiger Pacific Capital. Tiger Pacific acquired a 4% stake in Bira 91, valuing the company at approximately $600 million pre-money. Bira 91 also raised nearly Rs 100 crore ($12 million) via non-convertible debentures in the past four months.

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To date, Bira 91 has raised around $350 million, including a $70 million Series D round led by Kirin Holdings in November 2022. Peak XV (formerly Sequoia Capital) is the largest external stakeholder with 24.83%, followed by Kirin Holdings with 21.25% ownership as of the last equity fundraise.

Financial Performance


Craft beer maker Bira 91 achieved Rs 820 crore in revenue for the fiscal year ending March 2023, though its growth slowed compared to FY22. Beer sales accounted for nearly all its revenue, with income from this segment growing only 13% in FY23, affecting overall top line growth. Bira 91's operational revenue rose by just 14.6% to Rs 824 crore (including excise duty) in FY23, up from Rs 719 crore in FY22. In contrast, the company saw a 66.8% increase in revenue during FY22.
Beer sales made up 98% of Bira 91's total operating revenue, rising only 13% to Rs 807 crore in FY23. The remaining income was derived from the sale of non-alcoholic products and scrap. Despite slow growth, Bira 91's losses rose by 12.4% to Rs 445 crore in FY23 from Rs 396 crore in FY22. The ROCE and EBITDA margins were -71% and -26%, respectively. On a unit level, the company spent Rs 1.56 to earn a rupee in FY23.

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Competition


Bira 91 competes with ABInBev’s Haywards, United Breweries’ Kingfisher, and Carlsberg’s Tuborg. Positioned as a craft beer, Bira 91 has received strong customer feedback and extensive media coverage. The craft beer market still has significant growth potential, and with Bira’s planned expansion of manufacturing facilities, sales are expected to follow suit. Bira might benefit from focusing on achieving greater success in India, as margins abroad are likely to be lower due to higher competition.

 

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