Allied Blenders & Distillers, an issue worth Rs 1,500 crore, will close on June 27. The issue was opened to investors on June 25.
Compartments of IPO
The issue includes an offering of 35.6 million fresh shares of the company to collect a total of Rs 1,000 crore. The other part of the issue will raise Rs 500 crore through the sale of 17.8 million shares of promoters and other shareholders. Both the segments aggregate to Rs 1,500 crore.
Price Band
The company set the price band of the IPO between Rs 267 to Rs 281 per equity share. For retail investors, the minimum lot size has been decided at least one of 53 shares, which amounts to Rs 14,893. Meanwhile, the lot size and minimum investment are different for NIIs and QIBs.
Allotment and Listing
The company will finalise the allotment of shares on June 28. The liquor maker will hit the bourses – NSE and BSE – on July 02, according to the tentative schedule.
Employee Reservation
Allied Blenders kept aside 117,647 shares of the company for employees. The employees can avail these shares at a discount of Rs 26 to the issue price.
BRLMs and Registrar
ICICI Securities, Nuvama Wealth Management, and ITI Capital are managing the book of the Allied Blenders IPO. Link Intime India is working as the registrar for the issue.
About Allied Blenders & Distillers
The company is recognized as the largest Indian-owned Indian-made foreign liquor (IMFL) company and ranks third in India in terms of annual sales volumes from FY14 to FY22, said Master Capital Services in an IPO note quoting Technopak Report. It is one of only four spirits companies in India with a nationwide sales and distribution network and is a leading exporter of IMFL. As of FY23, the company held an estimated 11.8% market share in the Indian whisky market by sales volume
Expert’s Take on Issue
The majority of the raised amount, Rs 1,000 crore, will be utilized to pare down the debt and Allied Blenders & Distillers will become almost debt-free. “This will result in massive cost savings for the company as they pay a significant amount in interest costs. The IPO is priced at a lower valuation relative to its listed peers. We advise “Subscribing” to the IPO, keeping a long-term view,” said Master Capital Services.
