Bira Maker Taps Investors for ₹100 Cr While Cutting Staff, Overhauling Breweries

Ankur Jain-led B9 Beverages has reportedly raised ₹85 crore in its ongoing rights issue, which began last month amid cost-cutting measures, including staff layoffs and operational restructuring. The maker of Bira 91 launched a ₹100.75 crore rights issue in May, offering 31 lakh equity shares at ₹325 each—a significant discount compared to its earlier funding round.

According to the issue document published on its website, eligible shareholders could apply for 1 new share for every 7 held. The funds are intended for working capital and general corporate purposes. As per a Mint report, the remaining ₹15 crore is expected to be raised by mid-July. The report also noted that a large family office is likely to invest in the company for the first time.

A rights issue is a fundraising mechanism in which a company offers existing shareholders the opportunity to buy additional shares, typically at a discounted price to make the offer more attractive.

Before the issue, promoters held 17.8% of the company’s total shareholding. Key promoter entities include founder and CEO Ankur Jain, Shashi Jain, and Day1 Advisors. Among institutional shareholders, Kirin Holdings held the largest stake at 20.1%, followed by Peak XV (14.6%) and Sofina (6.4%). Other major shareholders included institutional investors (28.6%), family offices and individuals (27.8%), and the ESOP pool (5.7%).

According to Mint, B9 Beverages currently has around 6,500 private investors. Over the past two years, a surge in share sales has been driven largely by departing employees cashing out their ESOPs, following a significant downsizing from approximately 975 to 500 employees amid financial strain.

The company has multiple share classes, and equity shareholders now own only a small portion of the total shares. As of June 16, when part of the rights issue closed, B9 had secured commitments for around 85% of the ₹100.75 crore target, with over 300 investors participating—including a prominent family office. The ₹325-per-share rights issue price reflects a 55% discount to the ₹718 per share paid by Kirin in an earlier round, fuelling interest from employees and investors who see growth potential, particularly in markets like Delhi.

Operations Restructuring

The rights issue comes as the company undertakes deeper cost-cutting efforts and faces rising tax liabilities. Mint reported that B9 Beverages has been grappling with tax issues in multiple states and delays in salary payments, although most employee dues from the last financial year have now been cleared.

To revive its business, the company is shifting from in-house manufacturing to a distribution-led model. It now relies on contract manufacturing at four breweries, retaining only its Gwalior and Nagpur facilities for exclusive production. The restructuring also includes a 40% reduction in its manufacturing footprint, cutting capacity from 25 million to 15 million cases.

These changes are expected to increase utilisation to 58%, reduce factory overheads by nearly 50%, and save up to ₹600 crore annually. B9 Beverages also claims to have slashed fixed costs by ₹2,000 crore compared to FY24, driven by a 40% reduction in headcount and a shift in marketing spend towards in-store promotions. Margins are projected to improve from 63% in FY24 to 66% in FY26.