The development comes amid supply shortages of Bira91 over the past few quarters across some of India's largest spirits markets including Delhi, Karnataka and Haryana, profitability pressures, and a surge of competitors in the craft beer space.

Bira91 Maker Plans to Enter Capital Market in 2026

New Delhi: B9 Beverages, the company behind the craft beer brand Bira91, is planning an initial public offering (IPO) in 2026 and has enlisted investment bank Morgan Stanley for the pre-IPO process, according to executives familiar with the matter.

Ankur Jain, CEO and founder of B9 Beverages, confirmed the IPO plans, emphasizing that they depend on achieving certain business milestones. However, he did not comment on the involvement of Morgan Stanley.

This development follows recent supply shortages of Bira91 in major markets like Delhi, Karnataka, and Haryana, pressures on profitability, and increased competition in the craft beer sector.

Jain explained that the supply issues in Q3 and Q4 of FY24 were due to revamping supply and sales planning processes with BCG, regulatory paperwork updates from a company status change, and recent fundraising activities completed by March-April 2024. He noted that these issues have been resolved in most markets, with Haryana being the exception.

If successful, the IPO will take place a decade after Bira91's launch in 2015. Bira91 joins other consumer companies aiming to capitalize on a strong primary market. For FY23, B9 Beverages reported a widened net loss of ₹445.4 crore compared to ₹396 crore in FY22, with operational revenues growing 15% to ₹824 crore. Total costs rose by 14% to ₹1,282 crore.

Jain highlighted improvements in supply and sales processes, boosting variable margins from 25% over the last four years to over 43% in the past six months. A senior liquor industry executive attributed the losses to heavy marketing expenses, including significant sponsorships of ICC Cricket World Cup and T20 World Cup, and rapid overseas expansion.

In recent funding, Tiger Pacific Capital acquired a 4% stake for $25 million, and Kirin Holdings increased its stake to 20% for another $25 million. Peak XV and Belgium's Sofina are also investors. Over the past two years, B9 Beverages has secured $130 million in investments, including Kirin’s $70 million investment in November 2022 and a $10 million infusion from Japan’s MUFG Bank.

B9 Beverages also acquired Beer Cafe two years ago in an all-cash deal. Some of the funding is being used to retire debt from this acquisition.

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