Shares of Allied Blenders and Distillers made a strong Dalal Street debut on Tuesday as the stock was listed at Rs 320 on NSE, a premium of 13.88 per cent over its issue price of Rs 281. Similarly, the stock was listed with a premium of 13.20 per cent over the given issue price at Rs 318.10 on BSE.
Listing of Allied Blenders and Distillers has been muted-than-expectations. Ahead of its listing, Allied Blenders and Distillers was commanding a grey market premium of Rs 59 per share, suggesting a listing pop of little for than 20 per cent to the investors. However, its premium in the unofficial market stood around Rs 40-42 a day earlier.
Allied Blenders and Distillers sold its IPO in a fixed price band of Rs 267-281 per share, with a lot size of 53 shares. The primary offering was open for bidding from June 25 to June 27. The Mumbai-based company raised Rs 1,500 crore through this primary offering, which included a fresh share sale worth Rs 1,000 crore and an offer-for-sale (OFS) of up to 1,77,93,594 shares.
The issue was oversubscribed to a total of 23.55 times overall. The quota for qualified institutional bidders (QIBs) was booked a strong 50.37 times, while the non-institutional investors' quota was subscribed 32.40 times. The portions reserved for retail investors and employees saw bidding of 4.51 times and 9.89 times, respectively, during the three-day bidding process.
Incorporated in 2008, Allied Blenders and Distillers is an Indian-made foreign liquor (IMFL) company. The company offers five categories of Indian-made foreign liquor: whisky, brandy, rum, vodka, and gin. Additionally, they sell packaged drinking water under the Officer's Choice, Officer's Choice Blue, and Sterling Reserve brands.
Brokerage firms are mostly positive on the issue suggesting investors to subscribe to it for a long term. ICICI Securities, Nuvama Wealth Management and ITI Capital are the book running lead managers of the Allied Blenders IPO, while Link Intime India is the registrar for the issue.
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