Mount Everest Breweries files DRHP for IPO to raise funds for new brewery

Subheading: Indore-based brewer plans fresh issue of 11.5 million shares to fund capex and

NEW DELHI: Indore-based Mount Everest Breweries Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The proposed IPO comprises a fresh issue of up to 11.5 million equity shares with a face value of Rs 10 each. The company may also consider a pre-IPO placement in consultation with its book-running lead managers before filing the Red Herring Prospectus with the Registrar of Companies. If completed, the amount raised through the placement will be reduced from the fresh issue.

According to the DRHP, Mount Everest Breweries plans to use Rs 230 crore from the fresh issue towards partly financing the capital expenditure required to establish a proposed brewing facility with a capacity of 1.00 million HLPA.

Another Rs 70 crore will be used for repayment or pre-payment, in full or part, of certain borrowings, with the balance earmarked for general corporate purposes.

The offer will be made through the book-building process. Not more than 50 per cent of the net offer will be allocated to qualified institutional buyers, while not less than 15 per cent will be available to non-institutional bidders and 35 per cent to retail individual bidders.

Incorporated in 1999, Mount Everest Breweries is a beer brewing company based in Madhya Pradesh. According to a Technopak report cited in the DRHP, the company had a nearly 36.3 per cent share of the state’s beer production volume in FY26.

The company has a presence across 16 states and three Union territories and operates across economy, core and premium beer categories.

Its proprietary portfolio comprises five brands: Mount’s 6000, Lemount, Mount’s Lager, Dabang and Stok. As of 31 August 2026, its products were available across 22,229 retail outlets and other touchpoints.

The company also undertakes contract brewing and distribution or contract manufacturing for other beer brands in India.

Mount Everest Breweries currently operates two brewing facilities.

Its Simrol brewing facility in Indore, established in 2008, spans 11.69 hectares and had an installed capacity of two million hectolitres per annum as of 31 August 2026.

The company acquired its Mysuru brewing facility from Cheer Breweries Limited in September 2025. The facility spans 6.67 hectares and had an installed capacity of 0.80 million hectolitres per annum as of 31 August 2026.

The company has also entered into a contract brewing arrangement in Sonitpur, Assam. Separately, an agreement signed in May 2024 provides for brewing of its proprietary brands through a third-party manufacturer and distributor to cater to demand in the north-east.

Mount Everest Breweries reported revenue from operations of Rs 1,017.8 crore in FY26, up from Rs 546.6 crore in FY24.

Its net profit increased to Rs 53.18 crore in FY26 from Rs 20.36 crore in FY24.

According to the Technopak report cited in the DRHP, the company recorded an EBITDA CAGR of 45.83 per cent between FY24 and FY26 among the selected peer companies. It reported a PAT margin of 6.23 per cent and gross margin of 46.86 per cent in FY26.

Mount Everest Breweries is part of the Associated Kedia Group, which also includes listed entity Associated Alcohols & Breweries Limited (AABL).

While Mount Everest Breweries focuses on beer brewing, packaging, sales and distribution, AABL operates in the manufacture of Indian-made foreign liquor, Indian-made Indian liquor, extra neutral alcohol and ethanol.

The two companies operate independently with separate boards and no overlapping executive leadership, according to the DRHP. A non-compete agreement dated 1 April 2026 has also been entered into between Mount Everest Breweries, its promoters and AABL to keep their respective business activities separate.

As of 31 August 2026, Mount Everest Breweries had 6,322 customers, including 12 state excise departments or state corporations, 211 authorised distributors and wholesalers, and 6,099 bars, restaurants and luxury hotels.

Its distribution footprint covered 16 states and three Union territories. The company has also exported its proprietary beer brands to Mauritius, the UAE and the US.

The company operates across two principal verticals: its proprietary beer brands business and contract brewing business. The former focuses on building its owned brands across economy, core and premium segments, while the latter involves brewing, packaging and labelling beer for third-party brand owners.

Beeline Capital Advisors and Ashika Capital are the book-running lead managers for the proposed issue, while MUFG Intime India is the registrar.

The equity shares are proposed to be listed on the National Stock Exchange of India and BSE.