B9 Beverages Explores Sale of Founder Ankur Jain's Stake as Investors Seek New Strategic Buyer

B9 Beverages Pvt. Ltd., the maker of Bira 91, has initiated a process to identify buyers for founder Ankur Jain and his family's 17.8% shareholding, following Jain's exit from the company's board and relinquishment of executive control earlier this month. The sale is part of a broader restructuring aimed at recapitalising the financially stressed brewer. 

Investors Reach Out to Strategic and Financial Buyers

The process is being led by the company's board, with Anicut Capital coordinating discussions with multiple strategic and financial investors.

Potential buyers approached reportedly include:

• Varun Beverages
• Burman Family Office
• Simba Craft Beer
• DS Group
• Muthoot Family Office
• Hero Corp
• Murugappa Group
• Select private equity investors

The proposed transaction would involve the acquisition of the promoter family's stake and is expected to form part of a wider restructuring of the business.

Fresh Capital of ₹500 Crore Required

Beyond the stake acquisition, B9 Beverages is estimated to require approximately ₹500 crore of fresh capital to restart production, revive operations, and stabilise the Bira 91 brand.

Any investment is expected to be contingent upon resolving several outstanding issues, including:

• Pending litigation.
• Employee salary dues.
• Vendor liabilities.
• Other legacy financial obligations.

The capital infusion is intended to support operational revival following months of liquidity constraints.

Financial Stress Continues

The company remains under significant financial pressure.

According to reports:

• FY24 revenue stood at approximately ₹638 crore.
• The company reportedly incurred losses of around ₹1,000 crore during the year.
• Liquidity challenges have resulted in operational disruptions and production stoppages.

These financial challenges ultimately led to the recent settlement between the promoters, investors, and lenders, under which Ankur Jain stepped down from the board and relinquished executive control.

Outlook

The proposed stake sale represents the next phase of B9 Beverages' restructuring. While Bira 91 continues to enjoy strong consumer brand recognition, the opportunity is fundamentally a distressed turnaround rather than a conventional acquisition.

Any successful buyer is likely to acquire the promoter stake while simultaneously committing significant fresh capital to resolve legacy liabilities and restore operations. The company's long-term revival will depend on the successful execution of this recapitalisation and restructuring process.

Source:  https://economictimes.indiatimes.com/industry/cons-products/liquor/b9-board-investors-set-out-to-find-buyers-for-founder-ankur-jains-stake/articleshow/132591299.cms