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Bira 91 Becomes Public Entity, Expands ESOP Pool

Bira 91 Becomes Public Entity, Expands ESOP Pool
SUMMARY

The startup’s board has approved the expansion of Bira’s ESOP pool by 1,566,390 options

The move to convert to a public company comes weeks after the startup raised as much as $70 Mn from Japanese beverage conglomerate Kirin Holdings

The company has so far secured $280 Mn in funding from multiple investors, including Sequoia and Sixth Sense Partners

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Gearing up for its initial public offering (IPO), craft beer maker Bira 91 has now become a public entity. As per its regulatory filings, the startup has converted into a public company and renamed itself as B9 Beverages Limited.

The conversion to a public company marks a key milestone in its plans to list on the Indian bourses. Post this, the startup will file its draft red herring prospectus (DRHP) with the market regulator Securities Exchange Board of India (SEBI). In the prospectus, the startup will specify the amount it plans to raise and its financial health.

Meanwhile, the company’ board has given its green light to expand the employee stock options (ESOP) pool. As part of this, a special resolution was passed to increase Bira 91’s existing ESOP pool by 1,566,390 options. The company’s ESOP pool now stands at  3,649,199 options. 

Founded in 2015 by Ankur Jain, Bira 91 sells crafted beers and has a presence in 550 towns and cities across 18 countries. 

The move to convert to a public company comes weeks after it raised $70 Mn from Japanese beverage conglomerate Kirin Holdings. In August 2021, the startup lapped up around $20 Mn in its Pre-Series D round. The company has so far secured $280 Mn in funding from multiple investors. It is backed by marquee names such as Sequoia and Sixth Sense Partners.

Bira’s bid for the IPO comes at a time when new-age tech startups have conspicuously stayed away from their listing plans. 

Last week, ecommerce major Snapdeal dropped its INR 1,250 Cr IPO plan. Other players such as online pharmacy giant PharmEasy, auto marketplace Droom, fintech startup MobiKwik and D2C electronics brand boAt were also seen shelving their IPO plans this year. 

The move to defer IPOs have largely been attributed to volatile markets, apprehensions of a recession and concerns around profitability of new-age tech companies.

Despite these headwinds, Bira aims to go ahead with its IPO plans. Interestingly, in November, D2C skincare unicorn Mamaearth also became a public company and revealed its plans to get listed in 2023. 

On the competition front, Bira directly locks horns with global giants such as United Breweries, ABInBev and Carlsberg. 

The overall Indian beer market, which was pegged at INR 350 Bn in 2021, is expected to touch INR 580 Bn by 2027. 

This story was reported by Entrackr.

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