The much-anticipated initial public offering (IPO) of Allied Blenders and Distillers Limited is set for its stock market debut on July 2, 2024. The company, a significant player in the Indian liquor market, will have its shares listed and available for trading on the Bombay Stock Exchange (BSE) under the ‘B’ group of securities. As excitement builds around this event, market observers and analysts are predicting a promising start for Allied Blenders and Distillers shares.
Overview of Allied Blenders and Distillers
Allied Blenders and Distillers Limited is renowned for its extensive portfolio in the Indian Made Foreign Liquor (IMFL) segment. The company has a notable presence in the whisky, brandy, rum, and vodka categories. In addition to its core alcoholic beverage offerings, the company also operates in the packaged drinking water sector under well-known brands like Officer’s Choice, Officer’s Choice Blue, and Sterling Reserve.
Key Strengths
- Market Share: Allied Blenders holds approximately 11.8% of the Indian whisky market as of FY23.
- Product Range: The company offers a wide variety of alcoholic beverages, catering to diverse consumer preferences.
- Export Footprint: Beyond domestic sales, Allied Blenders is a leading exporter of IMFL.
IPO Details and Market Expectations
Listing Information
The shares will be available for trading from 10:00 AM on July 2, 2024. Despite a lukewarm response from retail investors, market analysts are optimistic about the stock’s debut, anticipating a listing price between ₹315 and ₹333 per share.
Grey Market Premium (GMP)
The grey market premium for Allied Blenders and Distillers shares stood at ₹41 on the listing day. This indicates a strong market expectation that the IPO will list at a higher price than its subscription price, boosting investor morale.
Analysts’ Predictions and Insights
Amit Goel, Pace 360
Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, highlighted Allied Blenders’ robust market presence and product diversity. He expects the IPO listing price to be around ₹315 to ₹320 per share, translating to a listing gain of about 12%.
Parth Shah, StoxBox
Parth Shah, Research Analyst at StoxBox, predicts a premium of around 15% over the subscription price. He emphasized the company’s extensive distribution network and its status as a major exporter of IMFL, contributing to its positive market outlook.
VLA Ambala, Stock Market Today
VLA Ambala, a SEBI-registered Research Analyst, projects a 7% to 13% premium listing, citing the company’s financial performance and market dynamics. Despite a decline in revenue between March 2022 and March 2023, the company saw an increase in profit after tax (PAT), reinforcing investor confidence.
Financial Performance
Revenue and Profit Trends
- Revenue: Allied Blenders’ revenue declined by 1.27% from March 31, 2022, to March 31, 2023.
- Profit After Tax (PAT): The company’s PAT rose by 8.47% during the same period, indicating improved profitability despite lower revenues.
Borrowings
The company’s total borrowings decreased from ₹954.74 crores to ₹798.11 crores, reflecting improved financial management and reduced debt levels.
Conclusion
Allied Blenders and Distillers Limited is poised for a positive stock market debut, with strong expectations for its IPO listing. The company’s solid market position, diverse product offerings, and improved financial metrics contribute to an optimistic outlook for investors. As the shares begin trading, all eyes will be on how well they perform and whether they meet the high expectations set by market analysts.
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Source: Livemint