Allied Blenders IPO: Key Dates, GMP, IPO Lot Size, and More

Allied Blenders And Distillers Limited (ABDL) ranks as the third-largest spirits company in India. It stands out as the sole spirits company in the country to have launched two millionaire brands within the last five years (2018-2022), namely Sterling Reserve Whisky and ICONiQ White Whisky, bringing its total millionaire brands to four. The company is led by Mr. Kishore Chhabria, a prominent figure in the Indian alcohol and beverage sector.

ABDL operates across various brands, covering a broad spectrum within the spirits market. Its premier brand, Officer’s Choice, stands as one of the top-selling whisky brands globally and is among the leading spirits brands for export from India, with sales in 14 countries worldwide. Sterling Reserve, our high-end product, is consistently achieving new milestones with its superior blend, while OC Blue is a popular choice in the luxury whisky segment.

Allied Blenders and Distillers Limited has launched its IPO, marking its debut in the Indian stock market. The IPO opened for subscription today and will accept bids until the 27th of June, 2024, which falls on a Thursday. The price range for the IPO is set at ₹267 to ₹281 per share, with the company looking to garner ₹1500 crore through the issuance. This public offering includes both fresh shares and an offer for sale (OFS). Market analysts note that the company’s shares are trading at a ₹76 premium in the grey market as of today.

Key Highlights of Distillers and Allied Blenders IPO:

• Distillers and Allied Blenders IPO GMP: Shares are trading at a ₹76 premium in the grey market, as observed by market analysts.
• IPO Opening Date: The subscription window for the book-built issue opened today and will close on June 27, 2024.
• Distillers and Allied Blenders IPO Price Band: The price range for the public offering is pegged at ₹267 to ₹281 per share.
• Distillers and Allied Blenders IPO Size: The aim is to raise ₹1500 crore, with ₹1000 crore allocated for fresh share issuance.
• Distillers and Allied Blenders IPO Lot Size: Investors can apply in lots, with each lot consisting of 53 shares of the company.
• IPO Allotment Date: Share allocation is expected to be finalized by Friday, June 28th, 2024.
• IPO Registrar: Link Intime India Private Limited is the appointed registrar for the IPO.
• IPO Listing: The shares are set to be listed on the BSE and NSE.
• Distillers and Allied Blenders IPO Listing Date: The anticipated listing date for the shares is Tuesday, July 2nd, 2024.

Should You Apply for the Allied Blenders and Distillers IPO?

• IPO Analysis: Anand Rathi labels the IPO as ‘supply,’ highlighting the company’s P/E ratio at 1,405 times its FY24 annualized earnings, a market capitalization of ₹78,596 million post-equity issuances, and a market cap-to-sales ratio of 0.99 times its FY24 annualized earnings. The proceeds are intended for debt repayment, reducing finance costs, and improving profit margins. Despite the near-term full pricing, the company is seen to have favorable long-term prospects.

BP Equities recommends subscribing, noting the issue’s high valuation on a price-to-earnings basis compared to peers but acknowledging the company’s robust position in the IMFL sector and the overall alcohol industry dynamics, suggesting it for high-risk investors seeking listing gains.

Sushil Finance, Marwadi Shares and Finance, and SBICAP Securities have given a ‘buy’ rating, while Swastika Investment advises primary market investors to steer clear.