BlackRock May Help Ailing Bira91 Maker With Rs 500 Crore Debt

Bira91 craft beer maker B9 Beverages is reportedly in talks to raise as much as Rs 850 crore through debt and a rights issue amid financial troubles. A majority of this is expected to come from American asset management firm BlackRock.

According to a report by the Economic Times (ET), the private equity giant is in advanced talks to provide Rs 500 crore to B9 Beverages in the form of structured debt. This would be used to acquire early shareholders such as Peak XV Partners and Sofina, and to infuse new capital, the newspaper said, citing executives.

While the company has not confirmed the report, its promoter Ankur Jain told ET that they are in the process of raising $100 million from a set of investors and family offices. The funds will be infused as primary capital and partly used to buy out some early-stage investors.

As of now, Jain and his family, along with Japanese beverages firm Kirin, hold 20% each in B9 Beverages. Peak XV holds 14%, and Sofina holds a 6% stake in the alcoholic beverage company.

BlackRock's Investment

According to the report, BlackRock is expected to invest in B9 Beverages through a debt instrument featuring a back-ended coupon structure. This means the interest payable by B9 would reduce if certain performance targets—such as revenue and EBITDA milestones—are achieved.

B9 Beverages and its promoters are in the final stages of raising Rs 850 crore. Of this, over Rs 500 crore will come from BlackRock as structured debt. The remaining Rs 300 crore will be raised through a mix of rights issues and private placements involving existing investors, including Indian family offices and domestic funds, the report said.

B9 Beverages will be launching a Rs 100 crore rights issue on May 22, which is expected to close in June, an executive told the newspaper.

BlackRock, the world’s largest asset manager, has experience in the alcoholic beverages space. It holds a stake of just under 8% in Molson Coors, the world’s fourth-largest brewer, which owns brands like Miller Lite, Coors Lite, and Blue Moon Belgian White. It also owns a stake in Treasury Wine Estates, a leading Australian wine company with a global portfolio of 70 brands.

Bira91's Financials

B9 Beverages' FY24 revenue dropped 22% to Rs 638 crore, while net losses widened to Rs 749 crore, according to ET. The company, which makes Bira beer, reportedly had to delay salary, vendor, and interest payments amid financial strain.

A legal name change led to compliance issues, an Rs 80 crore inventory write-off, and sales disruptions lasting up to four months. Regulatory changes in Andhra Pradesh and Delhi added to the challenges. Despite this, the firm recorded 40% year-on-year growth in Q4 FY25, according to Jain.