Shares of Allied Blenders and Distillers made a decent listing on Tuesday by gaining a little over 13 per cent. As against the IPO price of ₹281, the stock listed at ₹318.10 on the BSE and hit a high of ₹324.40 and a low of ₹306.70, before settling at ₹317.85, up 13.11 per cent over the IPO price. On the NSE, the stock closed at ₹317.90.
Earlier, the initial public offering (IPO) of Allied Blenders, the maker of Officer’s Choice Whisky, was subscribed 23.55 times. The IPO comprised a fresh issue of ₹1,000 crore and an offer for sale of up to ₹500 crore by the promoters.
The IPO received bids for 92.49 crore shares against about 3.94 crore shares on offer.
According to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, the listing price fell short of pre-listing expectations, possibly due to the high IPO valuation or concerns about the company’s financial health and competitive industry landscape. “Allied Blenders’ history of volatile financial performance with low margins and high debt levels remains a cause for concern,” she said.
The portion for qualified institutional buyers (QIB) received bids 50.37 times, while the category for non-institutional investors was subscribed 32.40 times and retail investors by 4.51 times. The employees and quota saw the portion subscribed 9.89 times. The Maharashtra-based company had reserved shares worth ₹3 crore for its employees, who will enjoy a discount of ₹26 a share to the final IPO price.
Allied Blenders—an Indian-owned, Indian-made foreign liquor company with a product range that includes five main categories—had garnered ₹449.1 crore from anchor investors. Among the anchor investors were Nippon Life Mutual Fund, JM Financial MF, LIC Mutual Fund, Jupiter India Fund, The Jupiter Global Fund MF, Troo Capital Fund, BNP Paribas Financial Market, 360 One Special Opportunities Fund, and Goldman Sachs (Singapore) Pte-ODI.
The company plans to use the net proceeds from the fresh issue to prepay or arrange repayment of a portion of its existing borrowings for general corporate purposes.
Allied Blenders and Distillers is an Indian-made foreign liquor (IMFL) company. The company offers five Indian-made foreign liquor categories: whisky, brandy, rum, vodka and gin. In addition, they sell packaged drinking water under the Officer’s Choice, Officer’s Choice Blue, and Sterling Reserve brands.