Monika Alcobev – IPO

About

Monika Alcobev is a leading player in the imported liquor industry in India and the Indian Subcontinent, specializing in the import, sales, distribution, and marketing of premium and luxury alcoholic beverages. Founded by Bhimji Nanji Patel and led by Managing Director Kunal Bhimji Patel, the company holds exclusive selling rights for over 70 globally renowned brands such as Jose Cuervo, Bushmills, Rémy Martin, Cointreau, Choya, and Belenkaya. With a strong market presence, Monika commands significant import shares in key categories including tequila (19.0%), rum (12.3%), liqueurs (7.5%), and gin (1.9%), while also achieving the highest realization per case at ₹17,017 (Source: Technopak Report). The company operates across more than 20 Indian states and Union Territories and serves international markets like Nepal, Sri Lanka, and the Maldives, including travel retail and duty-free channels. It caters to a wide customer base spanning HORECA, retail, embassies, ship stores, and more. Backed by a robust logistics and supply chain network supported by six strategically located warehouses, including a master facility at Nhava-Sheva, Mumbai, Monika Alcobev ensures seamless distribution and brand positioning. With a focus on exclusivity, brand development, and strategic planning, the company has emerged as a key player in the luxury beverage segment. Notably, its top 10 customers contributed over 60% of revenue across the last three fiscal years, highlighting strong client relationships and revenue stability.

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IPO Details

Price Band 271 - 286
Minimum Lot Size Retail 2*400/Lot (2,28,800)
Maximum Lot Size Retail 2*400/Lot (2,28,800)
S-Minimum Lot Size HNI 3 Lots (3,43,200)
S-Maximum Lot Size HNI 8 Lots (9,15,240)
Issue Type Fresh & Offer for Sale (OFS)
Issue Size 43,73,600 shares

(aggregating up to ₹125.08 Cr) 10,00,000 shares of ₹10

(aggregating up to ₹28.60 Cr)|

IPO Timeline

Issue Period 16th July - 18th July 2025
Allotment Date 21st July 2025
Refund Initiation Date 22nd July 2025
Demat Transfer Date 22nd July 2025
Listing Date 23rd July 2025

Key Strengths

  1. Monika holds exclusive selling rights for over 70 premium and luxury international brands across India and the Indian subcontinent, including names like Jose Cuervo, Rémy Martin, and Choya.
  2. The company operates bonded warehouses across Maharashtra, Karnataka, Delhi, and Haryana, ensuring efficient logistics, reduced duties, and faster distribution, thus enabling supply chain efficiency.
  3. With the highest realization per case at ₹17,017, Monika demonstrates a strong focus on premium positioning and margins, far surpassing competitors in per-case revenue.
  4. The company has an extensive reach across more than 20 Indian states and also serves markets like Nepal, Sri Lanka, and the Maldives, providing robust regional coverage.
  5. It is the top importer in the rum segment (12.3% market share) and holds substantial shares in tequila (19.0%), liqueurs (7.5%), and gin (1.9%) imports.
  6. Monika provides end-to-end services to its partner brands, including import, compliance, pricing, sales, distribution, and marketing tailored for the Indian and subcontinent markets.
  7. The company is backed by experienced leadership and adheres to FSSAI, customs, and excise regulations, ensuring predictable and compliant operations.

Key Risk Factors

  1. Whisky and tequila together contributed over 70% of revenue in Fiscal 2025. Any dip in demand or supply disruption in these two categories could materially impact the business.
  2. The company’s model depends on maintaining exclusive distribution rights. If any global brand revokes these rights or partners with competitors, it could hurt revenues significantly.
  3. As a distributor and not a manufacturer, Monika is highly dependent on its foreign suppliers. Delays, geopolitical tensions, or shipping/logistical issues may impact inventory and customer relationships.
  4. Growing trends toward low-alcohol or non-alcoholic beverages, health-conscious lifestyles, or shifts in brand loyalty may reduce demand for traditional spirits.
  5. Despite having insurance policies, not all losses (e.g., natural disasters or warehouse accidents) may be fully covered, potentially resulting in significant financial impact.
  6. The liquor industry is heavily regulated, and any changes or unfavorable interpretations in licensing, taxation, or excise laws could affect business operations.
  7. The company has experienced negative cash flows in the past and has rising borrowings, which could constrain future financial flexibility.
  8. Being reliant on imports and operating in emerging markets, the company is exposed to currency fluctuations, inflation, and external shocks like conflicts or pandemics.

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Financials of Monika Alcobev

Particulars FY 2025 FY 2024 FY 2023
Revenue from Operations 23,614.87 18,920.00 13,977.98
EBITDA Margin (%) 19.56% 16.99% 17.65%
Profit After Tax (PAT) 2,311.35 1,659.63 1,302.56
Return on Capital Employed (%) 16.21% 16.19% 25.92%
Earnings Per Share (EPS) 13.94 11.58 9.30
Net Worth 9,600.92 5,853.04 1,712.19

IPO FAQs

What is an IPO and how does it work?

An IPO (Initial Public Offering) is when a private company offers its shares to the public to raise capital and becomes publicly listed. In India, companies list their shares on exchanges (NSE/BSE) through IPOs. During the IPO subscription period, investors bid for shares via a broker or trading app. After the IPO closes, shares are allotted to investors and start trading on the stock market.

How to apply for an IPO with Zerodha or Upstox?

You can apply through online brokers like Zerodha or Upstox. For example, Zerodha’s Kite platform lets you apply via UPI or ASBA: log in to Kite, go to Bids → IPO → Apply, select the IPO, enter your bid quantity and price, submit, and approve the UPI mandate. Upstox works similarly: log in to the Upstox app or website, find the IPO section, select the IPO, enter lot size and bid price, input your UPI ID, and authorize the payment. Make sure your Demat account and linked bank account are ready before applying.

How is an IPO allotted to investors?

IPO shares are allocated by category. Typically, Indian IPOs have quotas for Retail, High Net Worth Individuals (HNIs), and Qualified Institutional Buyers (QIBs). Retail and HNI allotments usually use a lottery if oversubscribed, whereas QIBs get prorata allotment. For example, if demand from retail investors far exceeds available shares, a lottery (draw) decides who gets shares. Unsuccessful applicants simply get their blocked funds released.

What is GMP (Grey Market Premium) in an IPO?

GMP stands for Grey Market Premium. It is the unofficial premium above the IPO price that shares trade for in the grey market before listing. For example, if an IPO is priced at ₹100 and grey market traders are paying ₹120 per share, the GMP is ₹20. A positive GMP indicates strong demand and suggests potential listing gains, but remember this market is unregulated and unofficial, so GMP is only an indicative signal, not a guarantee.

What is the IPO calendar and where can I find upcoming IPOs?

An IPO calendar is a schedule of upcoming IPO issues (opening/closing dates, sizes, etc.). In India, IPO calendars are published on financial websites and exchange portals. For instance, sites like Chittorgarh or IPOWatch list upcoming IPOs and their timelines. You can also check NSE or BSE official websites under “New Listings” or “Upcoming Issues” for authoritative updates.

What are IPO listing gains and how do they work?

Listing gain is the profit an investor makes if a stock’s listing (opening) price is higher than its IPO issue price. In other words, if you bought at ₹150 and the stock opens at ₹200 on day one, your listing gain is ₹50 per share. Many investors apply to IPOs hoping for such gains. However, share prices can also fall on listing day if demand is weak, so listing gains are not guaranteed.

How does an IPO give profit to investors?

Investors profit from IPOs mainly in two ways: listing gains and longterm growth. On listing day, a share price often jumps if demand is strong, yielding an immediate gain. Over the longer term, if the company performs well, investors can earn from stock price appreciation. As one analysis notes, IPO investors aim for “longterm stock growth or immediate listing gains”. Always remember that IPOs carry risk, so profits depend on both market demand and company fundamentals.

Which IPO is best to buy today?

There’s no one “best” IPO to buy; it depends on the company’s fundamentals and market sentiment. Indian investors typically check the IPO’s prospectus, valuation, and oversubscription levels. The grey market premium (GMP) can give a clue: a high GMP suggests strong demand and potential listing gains. For example, if a GMP is ₹30 on a ₹100 issue, investors expect about a ₹30 upside on listing. However, always do your research on the business model and pricing. High demand or a big GMP doesn’t guarantee a profitable investment, so choose IPOs carefully.

Are IPOs safe investments?

IPOs can be profitable but come with risk. Often a heavily oversubscribed IPO will see a big price jump on day one (strong initial demand). However, many factors affect postlisting performance. As noted, “a high oversubscription does not always mean strong postlisting performance”. New IPO companies may be volatile initially, so share prices can fall if market conditions change. Retail investors should be cautious: IPO gains can be high, but IPOs also carry uncertainties and require strong risk tolerance.

How to check IPO allotment status?

After the allotment date, you can check your IPO status on exchange or registrar websites. For example:

  • BSE: Go to BSE’s “Application Status Check”, select Equity, pick the IPO and enter your PAN or application number.
  • NSE: Visit NSE’s “Application Status Check” under Resources/Tools, select your IPO, and enter your PAN/application details.
    This will show whether your bid was allotted and how many shares you got. You can also check the registrar’s site (e.g. Bigshare, KFintech) by entering PAN or application number as guided.