Monika Alcobev IPO Insights: What Investors Need to Know

Monika Alcobev Limited: Importing Excellence

Founded in 2015, Monika Alcobev has quickly established itself as a leading importer, distributor, and marketer of premium and luxury alcoholic beverages across India and the broader Indian Subcontinent (including Nepal, Sri Lanka, and the Maldives). They hold exclusive selling rights to over 70 globally recognized brands, including heavyweights like Jose Cuervo (tequila), Rémy Martin (cognac), Bushmills (Irish whiskey), and Cointreau (liqueur).

Their business model is comprehensive, covering everything from importation and logistics to sales, marketing, and branding. They cater to a diverse client base, including hotels, restaurants, cafes (HORECA), retail outlets (both private and government-run), embassies, and travel retail. With a widespread distribution network spanning over 20 Indian states and strategically located bonded warehouses, Monika Alcobev ensures efficient supply chain management and deep market penetration.

The company boasts significant market shares in key imported categories, holding approximately 19.0% of India's tequila import market and 12.3% of imported rum. Their focus on high-margin, premium brands is evident in their average realization per case, which is reported to be among the highest in the segment.

IPO Details: Your Investment Blueprint

The Monika Alcobev IPO is a BSE SME book-built issue with a total size of ₹165.63 crores. This comprises both a fresh issue of 47.91 lakh shares (₹137.03 crores) and an Offer for Sale (OFS) of 10 lakh shares (₹28.60 crores) by existing shareholders.

Here's a breakdown of the key dates and figures:

• IPO Open Date: July 16, 2025

• IPO Close Date: July 18, 2025

• Face Value: ₹10 per share

• Price Band: ₹271 – ₹286 per share

• Minimum Lot Size: 400 shares (for retail investors, minimum application is 2 lots or 800 shares)

• Minimum Retail Investment: ₹2,16,800 (at the upper price band for 800 shares)

• Allotment Finalization: Expected July 21, 2025

• Refund Initiation: Expected July 22, 2025

• Demat Account Credit: Expected July 22, 2025

• Listing Date (BSE SME): Tentatively July 23, 2025

The net proceeds from the fresh issue are earmarked for:

• Funding incremental working capital requirements (approximately ₹100.64 crore).

• Repayment or pre-payment of certain outstanding borrowings (approximately ₹11.45 crore).

• General corporate purposes.

Financial Performance: A Robust Sip

Monika Alcobev has demonstrated consistent and impressive financial growth. Their revenue from operations increased by 24.61% from ₹191.28 crores in FY24 to ₹238.36 crores in FY25. More importantly, their Profit After Tax (PAT) saw an even healthier jump of 39.22%, from ₹16.60 crores in FY24 to ₹23.11 crores in FY25.

Key financial indicators for FY25 include:

• Revenue: ₹238.36 crores

• Profit After Tax (PAT): ₹23.11 crores

• Net Worth: ₹96.01 crores

• Return on Net Worth (RoNW): 24.07%

• PAT Margin: 9.79%

• EBITDA Margin: 19.56%

These figures reflect a company with a strong and growing top and bottom line, indicating efficient operations within a high-growth market segment.

Subscription Status (As of July 18, 2025 - Day 3, 10:38 AM IST)

As of the morning of Day 3, the Monika Alcobev IPO has seen varied interest across categories:

• Overall Subscription: Approximately 1.83 times (as of 10:38 AM IST)

• Retail Individual Investors (RIIs): Subscribed approximately 1.16 times (inching towards full subscription)

• Non-Institutional Investors (NIIs): Subscribed strongly at approximately 4.40 times

• Qualified Institutional Buyers (QIBs): Subscribed approximately 1.09 times

While the overall subscription is healthy, the relatively slower pace from retail investors (as of this morning) is worth noting.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) serves as an informal indicator of market sentiment. As of July 18, 2025, the GMP for Monika Alcobev IPO is reported to be around ₹10 per share.

Given the upper end of the IPO price band (₹286) and a GMP of ₹10, the estimated listing price would be around ₹296. This suggests a potential listing gain of approximately 3.50%. While this indicates a modest premium, it's crucial to remember that GMP is an unofficial, volatile figure and should not be the sole determinant of your investment decision.

Investment Recommendation

Monika Alcobev operates in an attractive segment of the alcoholic beverage market, driven by the increasing premiumization trend in India. The company's established brand portfolio, exclusive distribution rights for global brands, strong distribution network, and consistent financial growth are significant strengths. Its asset-light model (focusing on import and distribution rather than manufacturing) also provides operational flexibility.

However, investors should also consider the following:

• SME Listing: This is an SME IPO, which typically involves higher risk and lower liquidity compared to mainboard listings.

• Valuation: Based on its trailing P/E of around 20.61x (on post-IPO EPS for FY25), the issue appears to be reasonably priced, especially considering the growth potential in the premium alcohol segment. However, some analysts might consider it slightly aggressive.

• Regulatory Environment: The alcoholic beverage industry is highly regulated in India, with varying state-level policies that can impact operations.

• Competition: While specializing in imported premium brands, the company faces competition from other importers and large domestic players with their own premium offerings.

• Working Capital Intensive: The business can be working capital intensive, given the nature of inventory management and distribution in the liquor industry.

Our Recommendation:

For well-informed investors with a moderate to high-risk appetite and a medium-to-long-term investment horizon, a "Subscribe" rating can be considered for the Monika Alcobev IPO. The company's strong fundamentals, leadership in a niche segment, and consistent growth make it an attractive proposition. The modest GMP suggests potential for some listing gains, but the core investment thesis lies in the company's long-term growth prospects within the premium liquor market.

For conservative investors or those seeking substantial listing pop, it might be prudent to exercise caution or consider other opportunities with higher expected listing premiums. The SME segment carries inherent risks that need to be carefully evaluated.

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Investors should conduct their own thorough due diligence, understand all associated risks, and consult with a SEBI-registered financial advisor before making any investment decisions. The Grey Market Premium (GMP) is an unofficial and volatile indicator. Investing in IPOs carries inherent risks, and there is no guarantee of returns or listing gains.