Allied Blenders and Distillers IPO: Issue subscribed 51% on Day 1; check GMP, other key details

  • Allied Blenders and Distillers IPO receives 51% subscription on the first day of bidding, with employee portion fully booked. Retail and non-institutional investors showing interest, indicating a successful start. Price band set at 267 to 281 per equity share.

Dhanya Nagasundaram
First Published25 Jun 2024, 03:52 PM IST
Allied Blenders and Distillers IPO price band has been set in the range of  <span class='webrupee'>₹</span>267 to  <span class='webrupee'>₹</span>281 per equity share of the face value of  <span class='webrupee'>₹</span>2.
Allied Blenders and Distillers IPO price band has been set in the range of ₹267 to ₹281 per equity share of the face value of ₹2. (https://www.abdindia.com/)

Allied Blenders and Distillers IPO subscription status: On the first day of bidding, the initial public offering of Allied Blenders and Distillers Ltd, the company that produces Officer's Choice Whisky, has received 51% subscription, as per BSE data. With the employee portion fully booked and the retail and non-institutional investor portion gradually showing interest, the issue seems to sail through its first day.

The initial share sale got bids for 2,01,96,975 shares against 3,93,71,669 shares on offer, according to BSE data.

The portion for qualified institutional buyers (QIBs) received 2% subscription while the category for non-institutional investors got subscribed 87%. The part for retail individual investors (RIIs) received 63% subscription, and the employee portion has been booked 2.06 times. 

Also Read: Allied Blenders and Distillers IPO: GMP, date, subscription status, review, other details. Apply or not?

 A day before its debut share-sale opened for public subscription, the business said on Monday that it had secured 449 crore from anchor investors. Allied Blenders and Distillers Limited IPO price band is 267 to 281 per equity share, with a face value of 2. Tuesday, June 25, marked the start of the Allied Blenders and Distillers IPO subscription period, which ends on Thursday, June 27.

Allied Blenders and Distillers IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. A discount of 26 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Also Read: Allied Blenders and Distillers IPO open for subscription today: 10 key risks investors must consider before investing

Allied Blenders and Distillers manufactures, distributes, and sells alcoholic beverages both nationally and worldwide. Based on sales volumes, as of Fiscal 2023, the firm holds a market share of over 8% in the Indian-Made Foreign Liquor (IMFL) industry. IMFL brands of vodka, rum, whiskey, and brandy are among the products offered by the business.

"Allied Blenders and Distillers, if we look at business, has a very strong brand in officers choice. I believe that for four years in a row, it was the largest-selling whisky globally. The company's balance sheet seems to be stretched. With this issue, they will be able to put things right, repay the debt ( 700 odd crores, etc.), which will change the balance sheet completely. 

The ownership of the company and management of the company were directly linked; where the promoter was doing day-to-day management, now he has taken a back seat, handed over the charge to professionals, and moved out of day-to-day activities. This will bring substantial savings to the bottom line because he would not be taking any of those kinds of payouts. That will get saved on this plus the interest cost that would get saved post-repayment of debt would roughly get the company 200 crore. 

So this is a big sum of money, and this would change the balance sheet of the company going forward," explained Arun Kejriwal, founder of Kejriwal Research and Investment Services.

Also Read: Allied Blenders & Distillers raises 449.1 crore from anchor investors ahead of public issue

Allied Blenders and Distillers IPO details

Allied Blenders and Distillers IPO, which is worth 1,500 crore, comprises a fresh issue of 1,000 crore, and an offer-for-sale (OFS) of 500 crore worth equity shares by the promoters and other investors.

In the OFS, promoters Bina Kishore Chhabria, and Resham Chhabria Jeetendra Hemdev will off load the shares.

ICICI Securities Limited, Nuvama Wealth Management Limited, and Iti Capital Ltd are the book running lead managers for the Allied Blenders IPO, with Link Intime India Private Ltd serving as the registrar.

Also Read: Allied Blenders and Distillers IPO: From key products to financials, here are 10 key things to know from RHP

Allied Blenders and Distillers IPO GMP today 

Allied Blenders IPO GMP today is +90. This indicates Allied Blenders and Distillers share price were trading at a premium of 90 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, Allied Blenders IPO expected listing price was indicated at 371 apiece, which is 32.03% higher than the IPO price of 281.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Allied Blenders and Distillers IPO: Price band fixed at 267-281 apiece; check issue details, key dates, more

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

 

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First Published:25 Jun 2024, 03:52 PM IST
HomeMarketsIPOAllied Blenders and Distillers IPO: Issue subscribed 51% on Day 1; check GMP, other key details

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