Allied Blenders and Distillers will make its Dalal Street debut on Tuesday, July 02 and if one goes by the grey market premium (GMP) for the alcohol player, the company is likely to deliver a decent listing pop. The premium in the unofficial market has seen some improvement ahead of the listing.
A day before its listing, shares of Allied Blenders and Distillers were exchanging hands at a premium of Rs 46 apiece, suggesting a listing pop of little for than 16 per cent to the investors. However, its premium in the unofficial market stood around Rs 40-42 over the weekend.
Shares of Allied Blenders and Distillers are set to be listed on the bourses on Tuesday. The shares are expected to list at a premium of around 15 per cent over the subscription price, said Parth Shah, Research Analyst at StoxBox. It is among the four spirit companies in India that has a pan-India sales and distribution footprint and is also a leading exporter of IMFL, he said.
"Due to internal practices and the promising macro situation, the company is set to experience growth in the coming period. However, as the issue seems to be expensive on the valuation front, we would advise the market participants to book profits on the listing day," he suggested.
The Allied Blenders and Distillers sold its IPO in the fixed price band of Rs 267-281 per share with a lot size of 53 shares. The primary offering was open for bidding between June 25 and June 27. The Mumbai-based company raised Rs 1,500 crore via its primary offering, which included a fresh share sale of Rs 1,000 crore and an offer-for-sale (OFS) of up to 1,77,93,594 shares.
Allied Blenders and Distillers is expected to listing around Rs 315-320 per share, resulting in a listing gain of around 12 per cent, said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360. "Post listing, investors should book profits, and we advise them to stay away from long-term investment in this stock. However, in the shorter term, it might remain range-bound," he said.
The issue was overall subscribed a stellar 23.55 times. The quota for qualified institutional bidders (QIBs) was booked a strong 50.37 times The quota for non-institutional investors was subscribed 32.40 times. The portions reserved for retail investors and employees saw bidding for 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 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.
The Allied Blenders IPO listing has garnered significant attention from investors and analysts alike. The IPO is seen as a strategic move to capitalize on the rising demand for premium spirits and expand its product portfolio, said Ankur Saraswat, Research Analyst at Trustline Securities. "Overall, the IPO is expected to generate substantial interest," he said.
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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