Mount Everest Breweries Files DRHP for Fresh Issue of 1.15 Crore Shares to Fund Rs 230 Crore Capex

Indore-headquartered beer manufacturer Mount Everest Breweries Limited (MEBL) has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The issue consists entirely of a fresh issue of up to 1.15 crore (11.5 million) equity shares with a face value of ₹10 each, with no offer-for-sale (OFS) component from existing promoters.

The company may also consider undertaking a pre-IPO placement prior to filing the Red Herring Prospectus with the Registrar of Companies (RoC), in which case the quantum raised will be reduced from the overall fresh issue size.

Use of Proceeds

Mount Everest Breweries intends to channel the fresh capital into manufacturing expansion and balance sheet deleveraging:

• Capital Expenditure: ₹230 crore will be utilized toward setting up a proposed brewing facility with an annual capacity of 1 million hectolitres per annum (HLPA).
• Debt Repayment: ₹70 crore will be deployed toward full or partial repayment and prepayment of certain outstanding borrowings.
• General Corporate Purposes: The remaining capital will support general corporate operations and expansion initiatives.

Operational Footprint and Market Presence

Incorporated in August 1999, Mount Everest Breweries operates across the economy, core, and premium beer segments. The company is part of the Associated Kedia Group, which also includes publicly listed distiller Associated Alcohols & Breweries Limited (AABL). While both entities share promoter group lineage, they operate independently with separate boards and operational management.

According to industry data cited in the draft documents, MEBL held an approximate 36.3% volume share of beer production in Madhya Pradesh in FY26. Its distribution and retail footprint spans 16 states and three Union Territories, reaching approximately 22,229 retail touchpoints and outlets.

The brewer's proprietary brand portfolio includes:

• Mount's 6000
• Lemount
• Mount's Lager
• Dabang
• Stok

In addition to its proprietary labels, MEBL undertakes contract brewing and contract manufacturing for third-party beer brands, operating two primary breweries located at Simrol in Indore (established in 2008) and Mysuru in Karnataka (acquired in 2025). The company also maintains a contract brewing tie-up in Sonitpur, Assam, catering to eastern and north-eastern markets.

Financial Profile and Issue Structure

MEBL has posted steady growth in recent fiscal periods, with restated consolidated revenue rising 45% and profit after tax (PAT) increasing 54% between FY25 and FY26.

The public offering is being executed through a book-building process. Allocation reservations set out in the preliminary offer document are structured as follows:

• Qualified Institutional Buyers (QIBs): Not more than 50% of the net offer.
• Non-Institutional Investors (NIIs): Not less than 15% of the net offer.
• Retail Individual Investors (RIIs): Not less than 35% of the net offer.

Beeline Capital Advisors Private Limited is acting as the sole Book Running Lead Manager for the issue, while MUFG Intime India Private Limited has been appointed as the registrar. The equity shares will be listed on both the BSE and the National Stock Exchange of India (NSE).

Tags: Mount Everest Breweries Associated Alcohols and Breweries SEBI BSE NSE Alcoholic Beverages