Allied Blenders & Distilleries IPO Debuts With 13% Premium
The Rs 1,500 IPO consisted of fresh issues of up to Rs 1,000 crore and an offer-for-sale (OFS) worth Rs 500 crore
The initial public offering (IPO) of Allied Blenders and Distilleries (ABD), an Indian-made foreign liquor firm (IMFL) made a debut on the bourses with around 14 per cent premium. The IPO listed at Rs 320 against its issue price of Rs 281.
During its subscription phase, ABD IPO received more than 53 times subscription from Qualified Institutions, however retail subscription stood at 4.73 per cent. Overall, the issue was filled nearly 24.85 times.
The Rs 1,500 IPO consisted of fresh issues of up to Rs 1,000 crore and an offer-for-sale (OFS) worth Rs 500 crore by promoter and investor selling shareholders. The price band for the issue was fixed at Rs 267 to 281.
Nuvama Wealth Management, ICICI Securities and Iti Capital are the book running lead managers, while Link Intime India is the registrar to the offer.
Analyst Advice
“The company is all set to tap into the growing demand of the IMFL segment which is evident by figures that substantiate industry growth, and the company leveraging its strength in popular segments by carrying out branding. However, as the issue seems to be expensive on the valuation front, we would advise the market participants who have been allotted the shares to book profits,” said Parth Shah, Research Analyst, Stoxbox.
IPO Objectives
The proceeds from the fresh issue will be utilised to the extent of Rs 720 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and general corporate purposes.
Additionally, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 7,116 crore in FY23, compared to Rs 7,208 crore in FY22.
The firm’s profit after tax (PAT) increased to Rs 1.60 crore in FY23 compared to Rs 1.48 crore in FY22.
Overall, revenue decreased by 1.27 per cent, whereas PAT rose by 8.47 per cent.
About Allied Blenders & Distilleries
The Mumbai-based company is the third largest IMFL company in India, in terms of annual sales volumes between Fiscal 2014 and Fiscal 2022 and has an estimated market share of 11.8 per cent in the Indian Whisky market for fiscal 2023.
The Company started its journey in 1988 with the launch of flagship brand, Officer’s Choice Whisky which marked their entry into the mass premium whisky segment. As of 31 December 2023, their product portfolio comprised 16 major brands of IMFL across whisky, brandy, rum, and vodka.
