Allied Blenders and Distillers Lists at 14% Premium at Rs 320 per share on NSE!

Allied Blenders and Distillers is a company based in India that specializes in Indian-made foreign liquor, debuted on the Indian stock market today.

The stock of Allied Blenders and Distillers settled at Rs 315.05 per share on the BSE, representing an impressive 12.12% premium over the final issue price of Rs 281 per share. Additionally, on the NSE, the company’s shares opened at Rs 320 per share, indicating a gain of 13.88%. The market capitalization on the BSE stands at around Rs 8897.58 crore.

IPO Proceeds 

The Company proposes to utilize the Net Proceeds towards funding the following objects: Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company and General corporate purposes.

Business Overview

Incorporated in 2008, Allied Blenders and Distillers is a company based in India that specializes in Indian-made foreign liquor. Their product range includes whisky, brandy, rum, and vodka. Additionally, they market packaged drinking water under brands like Officer’s Choice, Officer’s Choice Blue, and Sterling Reserve. Officer’s Choice Whisky, launched in 1988, marked the company’s entry into the mass premium whisky segment. It has been recognized as one of the top-selling whisky brands globally in terms of annual sales volumes from 2016 to 2019.

Subscription details

As of June 27, 2024, the IPO was subscribed 24.85 times. The public issue saw a subscription rate of 4.73 times in the retail category, 53.01 times in the QIB category, and 34.09 times in the NII category.

The IPO price band was Rs 267 and Rs 281, with a face value of Rs 2 per share and a lot size of 53 shares. The total size of the company’s IPO was Rs 1,500 crore, and the final share issue price was fixed at Rs 281 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 14% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.