Northern Spirits Limited IPO

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(i) Northern Spirits Ltd. (NSL) had embarked in 2012 on a journey as Northern Spirits Pvt. Ltd to make a mark in the liquor business. Northern Spirits chose New Delhi (NCR) as its business capital, the paradise that constantly brews promises for the liquor entrepreneurs. NCR cherishes the pride of a trendsetting alcohol consumption pattern that has inspired Northern Spirits to select New Delhi as the starting point. And the best thing is that it has been enjoying a business growth of 40% YOY for last 4years.

(ii) The Promoters of Northern Spirits have a commendable experience of more than 35 years that includes: A strong start in Punjab since 1975 and then in Maharashtra through ‘Wine Enterprises’ since 1991. In the year 2002-03 the entrepreneurial Journey of the promoters, commenced in the state of West Bengal, through its Group concern ‘United Wines’ whose Proprietor is Mr. Anuj Bakshi.

(iii) Northern Spirits Ltd started its operations in 2012 as ” Importer & Distributor of fine Alcoholic Beverages”  and is focused in imports of leading international brands such as William Grants ( Glenfiddich Single Malt, Grants Whisky, Monkey Shoulder Whisky, Balvenie Single Malt, Hendricks Gin), Bacardi Global ( Grey Goose Vodka, Bombay Sapphire Gin, Dewar’s Whisky, Martini Vermouth), Shepherd Neame Beer, Amigos Beer, Carlo Rossi California Wines, Tomich Australian Wines, Cooper’s Australian Beer, West Cork Irish Whiskey, Two Tree Gin, Reddot Wheat Beer, Aqua Riva Mexican Tequila & Organika Russian Vodka and are distributing the same in Northern Region – Delhi, North East, West Bengal and as a strategic move decided to integrate the business for better corporate governance and Compliance.

(iv) Mergers of “United Wines” and “NSL“.- On 1st April 2018 United Wines was merged with Northern Spirits Limited.

Northern Spirits Limited IPO Stock Quote & Charts

38.00

+2.70%

  • Open: 38.00
  • High - Low: 38.00 - 38.00
  • Previous Close: 37.00
  • Total Traded Volume: 9000
  • Updated On: 23-May-2019

Objects of the Northern Spirits Limited IPO:

The Company is Issuing 43,02,000 Shares at Rs. 43 a piece thereby raising 18.4986 Cr from the Proceed for the Following Items. A. To meet the working capital requirements of the company= 15.6486 Cr. B. To meet the Issue Expenses= 1.35 Cr. C. General Corporate Purposes= 1.50 Cr

Northern Spirits Limited IPO Details:

Open Date: Mar 22 2019
Close Date: Mar 27 2019
Total Shares: 4,302,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price IPO
Issue Size: 18.50 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 43 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 05 2019

Financials of Northern Spirits Limited IPO:

Comparison With Peers:

The Company believes that none of the listed companies in India offer products or services across the various business segments in which they operate. Hence a strict comparison is not possible.

Recommendation on Northern Spirits Limited IPO:

Review and Recommendation of Northern Spirits Limited IPO from IZ team is: 4/10. [ The Company has a very good business model and has shown excellent growth. The sector company caters to is ever growing though highly competitive. The valuation looks reasonable in terms of P/E and Mcap/Sales.  ]

Lead Manager of Northern Spirits Limited IPO:

  1. Finshore Management Services Limited

Registrar of Northern Spirits Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Northern Spirits Limited Woodburn Central, 5-A Woodburn Park Road, Suite NO. 603, 6th Floor, Kolkata - 700020.

Bid Details of Northern Spirits Limited IPO as on
27 Mar 2019 | 11:58:04 PM

Category No.of shares offered No. of shares bid
2,043,000 3,729,000
2,043,000 1,596,000
216,000 216,000
4,302,000 5,541,000
QIBs No
QIBs+HNIs Subscription 1.83X
Retail Subscription 0.78X
Total Subscription 1.30X

Discussion on Northern Spirits Limited IPO:

    Hi MW,
    Please help me to understand that when it is mentioned “Market Lot Size 3000” means I have to purchase minimum 3000 shares and then multiple of 1 and so?
    Appreciate your help 🤗

    Very High receivables in the first 6MFY19. The Total Revenue for 6MFY19 is 48 Cr and total receivables are close to 45 Cr.

    As of September 30th, 2018, they have 41 whole-time employees.

    NSL is evolving with a widely growing distribution that includes the import of some exotic blends long with its Agency Brands and Franchisee Ownership for some class-apart liquors.

    NSL is engaged in the business of importing and distribution of Whisky, Vodka, GIN, Red and white wine, Beer, tequila etc.

    The company has done a J.V with South State Beverages, Australia to sell Dan a 500 ml Can with 8% Alcohol to compete with Budweiser Magnum, Carlsberg, Elephant Indian brands.

    Launching

    Phase-I- Already launched at Delhi, Assam, and Maharashtra.

    Phase-II: To be launch in April 2019 in U.P

    Phase-III: To be launch in June 2019 in CSD Canteen Army and South India

    They are looking at 15% revenues to be generated by DNA.