BIRA 91 Unlisted Shares

B9 Beverages (BIRA 91) Unlisted Shares

Bira in talks to raise $132 mn in record fundraising; GEM among suitors

Business Standard

2 min read

Bira 91 eyes record $132 million funding round with GEM as key investor.

Expert Analysis :

  • Fundraising Talks: Bira 91 is negotiating its largest-ever fundraising of $132 million, with Global Emerging Markets (GEM) among potential investors.

  • Funding Structure & Market Share: The plan includes $50 million in equity from GEM and $82 million via structured credit, while Bira holds under 5% market share amid dominance by AB InBev, Carlsberg, and Heineken.

  • Operational Challenges: The company suffered 800 million rupees ($9 million) in losses due to business disruption from its name change in 2023/24.

  • Fund Utilization & Recovery Efforts: The funds will be used for working capital and clearing pending dues, as Bira focuses on business recovery through restructuring its sales and supply chain operations.

  • Valuation Context: Bira, valued at $450 million two years ago, has raised $210 million since inception and continues recovery efforts amid a tough regulatory climate and competition from AB InBev, Carlsberg, and Heineken.

Takeaways

The $132 million fundraising signals investor confidence in Bira 91’s recovery strategy, despite recent regulatory setbacks and market competition.

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