Established in the summer of 2015 by B9 Beverages and headquartered in New Delhi, Bira 91 has quickly become the rage amongst urban millennials owing to its delicious beers, bold identity, and strong draft network (Wikipedia).
It is crafted with the creative urban drinker in mind — someone who likes to have fun and doesn’t take life (or beer) too seriously, the brand aims to disrupt the global beer world with 21st-century technology and its playful monkey mascot.
In 2017, Bira 91 leaped across to New York City to begin its campaign in the United States.
In 2018, the brand started its wider expansion in the Asia Pacific market by entering Singapore.
In 2019, Bira beer clinches an ICC sponsorship deal for five years, making it the first Indian beverage brand to strike a global sponsorship deal with the cricket governing body. They featured in ICC world cup 2019 in England.
Sports marketing experts estimate the size of Bira 91’s sponsorship deal to be $5-6 million per year. The brand will benefit through this partnership as India will host two big-ticket events, including the Cricket World Cup 2023 and T20 World Cup 2021.
It is one of the fastest-growing beers in the world, Bira 91 has built a strong portfolio of essential beers and aims to drive the global shift in beer towards more color and flavor.
In less than three years, Bira 91 is now in the top 25 craft beer brands worldwide by sales volume and the fastest-growing beer brand in the world (growing 5x in 2017).
The company now operates two breweries in India and has offices in nine cities including New York City.
It has a passionate team of over 350 beer lovers who have only one goal – to change the world of beer and beer for the world.
B9 Beverages Pvt., the owner of Indian craft-beer brand Bira 91, will open its fifth local brewery before the end of the year 2021 as it seeks to capture swelling demand in the country for more flavorsome tipples before a planned initial public offering.
The capacity at Bira’s new planned unit can be expanded to 1 million hectoliters (1 hectoliter = 100 liters) — boosting Bira’s existing capacity of 2 million hectoliters. Currently, the country’s fourth-largest brewer, Bira trails foreign firms that dominate the Indian market, including Budweiser maker Anheuser-Busch InBev NV, Carlsberg A/S, and Heineken NV, which owns India’s Kingfisher.
With sales amounting to $170 million on an annual basis, Bira is set to be profitable at an operating level within six months as per Jain’s interview to Economics Times taken on 25th of Aug 2021.
Private Equity Investors and Valuation of Bira Share Price
Bira 91 is backed by Sequoia Capital and Belgium’s Sofina Capital.
Bira 91 to date has raised close to 518 Cr and counts celebrities Farhan and Zoya Akhtar and film producer Ritesh Sidhwani along with Flipkart’s CEO Kalyan Krishnamurthy, Sequoia Capital among its investors.
Bira 91 other investors include Snapdeal’s Rohit Bansal, Zomato co-founder Deepinder Goyal, TR Capital, Anicut Capital, Sofina, and Smile Group, as per deals tracker Crunchbase.
Bira 91 last raised $50 million, announced in May 2018, at a reported valuation of around 1470 Cr. At that point in time, Bira Share price was around Rs. 400 per share.
In 2019, they have raised 30 Cr from Sixth Sense Ventures, at a reported valuation of 1722 Cr.
In April 2020, Bira 91, has raised Rs 38.08 crore ($5 million) from its existing investors, Sequoia India and Belgium-based investment firm Sofina. Sequoia has put 22.84 Cr and Sofina has put 15.23 Cr. At that point in time, Bira Share price was around Rs. 600 per share.
B91 is focussing on Premium Beer to Beat Inflation
India’s fastest growing craft beer maker Bira is planning to increase the sale of its premium beer to beat the inflation.
We all know due to supply chain issues around the world, the inflation is very high. In India, we have seen the WPI is at 13% and CPI a 7%. This has affected the whole sectors in the economy.
Raw materials used in Beer?
The main raw material used for making and packaging of beer is Wheat or Barley, Glass, and Aluminium. And, the prices of these commodities are soaring in the market. As per Motilal Oswal Report, Barley prices have been surged by 65% in the last one year and 5% quarter on quarter in the month of March. The barley prices are affected due to Russia and Ukraine war, as Ukraine exports world 18% barley.
As per Jain, the founder of Bira Beer, the current environment is extremely tough as cost has risen by 30-70%.
How bira is planning to tackle this?
We all know, Bira beer has a double digit market share in the premium beers. In fact, when Bira was started in the year 2015 at that time they were selling only premium beers. However, they have slowly started manufacturing other beers to target smaller tier-2, tier-3 and tier-4 cities. Now, to beat inflation and pass on the cost to the consumers, they are focusing on selling premium beers. As wealthy people who consumes premium beers are not price sensitive.
How many beers bira produces every month?
As per Jain, B9 Beverages has also ramped up its capacity to 22 lakh cases a month (a case has 12 bottles), up from 6 lakh pre-Covid, with consumers returning to bars and liquor shops remaining functional.
So, bira is producing ~2.64 Crores bottles a month.
Market size of Beer Industry
India’s beer industry, according to Expert Market Research estimates, was worth nearly Rs 37,100 crore in 2020, and is likely to reach Rs 66,200 crore by 2026 at an estimated annualised growth rate of about 9.2%. So, very good growth opportunities are available in the beer market for the company.
Valuation of Bira Beer
Currently, the Bira Beer Unlisted Share is available in the unlisted market at Rs.850 per share and with ~6 Crores shares outstanding, the Mcap or Valuation is ~5000 Crores.
In FY22, they clocked a revenue of ~800 Crores, so Mcap/Sales = 6.25x.
Bira Unlisted Shares Competitors
Bira 91 is competing with beer startups such as White Owl, Simba, Brewbot, White Rhino, and Kati Patang.
Note: Above Bira Share Price Graph is taken on 22nd Feb 2022. For updated Bira share price, please consider downloading and installing our Android App. You can also check the live prices and historical prices of other unlisted shares currently trading in unlisted markets of India.
Operating Financials of Bira Unlisted Share in FY 2021-22
Please find below the procedure for buying Bira Unlisted Shares at UnlistedZone.
1. You confirm booking of Bira Unlisted Shares with us at a trading price.
2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy.
These are KYC documents required as per SEBI regulations.
3. We will provide the bank details.
4. You need to transfer funds in that account.
5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
6. Payment has to be done from the same account in which shares are to be credited.
7. We will transfer the shares in 24 hours if funds are credited before 2 pm.
Important Note: Please note that the lock-in period for selling Bira Unlisted Shares is 6 months after listing. Hence you can’t sell Bira Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at firstname.lastname@example.org
Please find below the procedure for selling Bira Unlisted Shares at UnlistedZone.
1. We will confirm our buying price of Bira Unlisted Shares.
2. We will give you our client master report and you will transfer the Bira Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the Bira Unlisted Shares are received in our demat account..
4. We will transfer the funds in your bank account within 24 hrs of receiving the Bira Unlisted Shares.
5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.
6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.
Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.
Lock-in period of Bira Unlisted Shares depends upon category of investors.
1. Venture Capital Funds or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of Bira Unlisted Shares.
2. AIF-II - There is no locking period.
3. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of Bira Unlisted Shares.
This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.
DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the Bira Unlisted Shares from his/her demat account to any other demat account.
There are two Types of DIS Slip.
1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.
a. ISIN number of Bira Unlisted Shares.
b. Name of Bira Unlisted Shares
c. Quantity of Bira Unlisted Shares
d. Cosideration Amount
e. Target DP ID and Client ID
2. Online DIS - Some of the broker these days gives facility of transferring the Bira Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the Bira Unlisted Shares by filling the details similar to Ofline-DIS.
In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our UnlistedZone platform, if somebody wants to buy Bira Unlisted Shares then minimum investment would be 35-50k.
Yes, buying and selling of unlisted shares in India is 100% legal.
If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.
If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.
After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.
If you buy Bira Unlisted Shares from UnlistedZone then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.
Check credit of Bira Unlisted Shares Instantly?
1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
"DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.
In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
CDSL = 12345678(DP ID) and 91234567(Client ID).
NSDL = IN123456 (DP ID) and 78912345(Client ID).
Check in brokers application?
Credit of Bira Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.
The Bira Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.
The price of Bira Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on UnlistedZone.live platform to see the historical graphs and prices of all the shares at one place.
If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.
"UnlistedZone is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, UnlistedZone has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with UnlistedZone."
We at UnlistedZone do the valuation based on 2 methods.
1. We check the last funding that is being done in the Bira Unlisted Shares to ascertain the benchmark valuation.
2. If there is no funding happened in the company, then we try to find a business similar to Bira Unlisted Shares in the listed space and do comparison method to ascertain the valuation.
As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.
We source shares either from the employees or initial investors looking to liquidate their Bira Unlisted Shares.
Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their Bira Unlisted Shares in the unlisted market itself.
Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.
For tracking news and other information about Bira Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.