Glasses Clink: Allied Blenders IPO Sees 14x Subscription On Final Day; GMP Hints Strong Listing

As the Allied Blenders and Distillers IPO enters its final day of subscription on June 27, 2024, market enthusiasm remains palpable with significant investor participation across all segments. The initial public offering (IPO) of Allied Blenders and Distillers Limited, a key player in the Indian-Made Foreign Liquor (IMFL) sector, has garnered attention for its robust pricing and promising market debut prospects.

By 3 pm on the third day of bidding, the Allied Blenders and Distillers IPO was oversubscribed 14 times overall, showing strong investor confidence. The non-institutional investor (NII) segment saw an impressive oversubscription of 26 times, while the retail portion was subscribed 3.76 times. The qualified institutional buyer (QIB) segment also showed solid interest, filling up 22.95 times its allotted quota. ABD's share sale attracted bids for 58,16,11,559 shares against the offered 3,93,71,669 shares, highlighting a significant milestone in the company's IPO journey.

The IPO began with a slow yet steady pace on its first day of bidding, Tuesday, June 25. By the end of the day, the overall subscription status stood at 51%. The employee portion was fully booked early on, signalling the growing interest that would unfold. By the close of the first day, the retail investor segment had reached 63% subscription, the non-institutional investor group was at 87%, and the QIBs had a subscription rate of 2%. Notably, the employee portion saw a 2.06 times subscription, reflecting strong confidence from within the company.

Reflecting market sentiment, the grey market premium (GMP) for Allied Blenders and Distillers IPO has surged to Rs 88, up from Rs 85 observed just a day earlier. This uptick in the GMP indicates growing investor anticipation and positive market sentiment surrounding the IPO.

Allied Blenders and Distillers has priced its IPO in the range of Rs 267 to Rs 281 per share, aiming to raise Rs 1,500 crore through a combination of fresh issue and offer for sale (OFS). The fresh issue constitutes Rs 1,000 crore, while Rs 500 crore will be through the OFS, facilitating partial equity dilution by promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra Hemdev. The funds raised are earmarked for enhancing production capacities, expanding market reach, and optimizing operational efficiencies.

Founded as a player in the IMFL sector, Allied Blenders and Distillers boasts a diverse portfolio of alcoholic beverages, including whiskey, vodka, rum, and brandy. As of Fiscal 2023, the company held a market share exceeding 8% based on sales volumes.

The IPO is managed by leading financial institutions including ICICI Securities Limited, Nuvama Wealth Management Limited, and Iti Capital Ltd, with Link Intime India Private Ltd serving as the registrar. This consortium of advisors reflects the planning and execution behind the IPO process.

Analysts and market experts remain optimistic about Allied Blenders and Distillers' IPO, citing its robust subscription rates across investor categories and the buoyant grey market premiums. The company's established market position and growth initiatives are expected to fuel its future performance and valuation post-listing.

After receiving an overwhelming response from the investors, Allied Blenders and Distillers IPO stands poised for a promising market debut. The strong investor interest, coupled with oversubscription in key segments, signals a confident market sentiment towards the company in the IMFL sector.

Investors and stakeholders await the listing day performance, which will provide further insights into Allied Blenders and Distillers' valuation and market reception.