Allied Blenders and Distillers IPO Shows Steady Start on Day . The much awaited IPO of Allied Blenders and Distillers Ltd, known for its Officer’s Choice whisky, began trading on a cautious note, with a subscription rate of 51% by the conclusion of the first day. This early response suggests moderate investor interest, with retail and non-institutional investors exhibiting varied levels of involvement.
Subscription Details and Financial Outlook
The Allied Blenders IPO, priced between ₹267 to ₹281 per equity share, plans to raise ₹1,500 crore through a fresh issue of ₹1,000 crore and an offer-for-sale (OFS) of ₹500 crore. The company intends to use the proceeds to decrease its debt from ₹798 crore to around ₹80 crore post-issue. This strategic strategy is projected to considerably decrease interest costs, thereby enhancing profitability and return ratios.
Market Response and Analyst Recommendations
The IPO has received a positive reception in the grey market, with a Grey Market Premium (GMP) of +87, indicating strong investor appetite and expectations for a promising listing. Analysts predict a listing price of approximately ₹368 per share, which is significantly more than the issue price.
Industry Positions and Strategic Shifts
Allied Blenders and Distillers has a significant 20.9% market share in the mass premium segment with Officer’s Choice, demonstrating its strong market position. Recent strategy adjustments, such as professionalizing management and lowering reliance on promoter involvement, are projected to increase operational efficiencies and lower costs.
Conclusion
As the IPO approaches its conclusion on June 27, market analysts and potential investors are closely monitoring developments. With its strategic debt reduction strategies and strong brand equity, Allied Blenders and Distillers is well-positioned to handle the competitive terrain of India’s Made Foreign Liquor (IMFL) business with durability and growth potential.
Investors are advised to consider the dynamics of the IPO market and consult with financial experts before making investment decisions.
Stay tuned for further updates on Allied Blenders and Distillers’ IPO as it progresses towards its listing and beyond.
Source: LiveMint
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