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Allied Blenders and Distillers, a Maharashtra-based liquor company, is making waves in the investment world with its IPO opening for subscription. The initial public offering has garnered significant attention from institutional investors, raising a substantial amount of funds ahead of its issue opening on June 25 and closing on June 27.
With a fixed price band of Rs 267-281 per share, investors are eyeing this opportunity to be a part of the Indian-made foreign liquor (IMFL) industry. Allied Blenders offers a range of products including whisky, brandy, rum, vodka, and gin, along with packaged drinking water under its popular brands like Officer’s Choice and Sterling Reserve.
The IPO, valued at Rs 1,500 crore, comprises a fresh share sale of Rs 1,000 crore and an offer-for-sale (OFS) of Rs 500 crore by its promoters. Additionally, eligible employees have the chance to invest with a discount of Rs 26 apiece. The company has already secured Rs 449.1 crore from anchor investors, setting a strong foundation for its public offering.
The proceeds from the IPO will be utilized for debt repayment, general corporate purposes, and to enhance the company’s market presence. Allied Blenders and Distillers have a global footprint, exporting their products to 22 international markets and holding a significant market share in the mass premium whisky segment.
When it comes to investment recommendations, various brokerage firms have differing opinions. Anand Rathi Research suggests subscribing for long-term gains, citing the company’s growth potential and market position. On the other hand, Swastika Investmart advises caution due to the industry challenges and high valuation.
StoxBox and SBICap Securities lean towards subscribing with caution, highlighting the market dynamics and future prospects of the company. Sushil Finance takes a neutral stance, emphasizing the competitive landscape and potential risks involved. Prabhudas Lilladher, on the other hand, recommends subscribing, considering the company’s growth strategy and market positioning.
Overall, the Allied Blenders and Distillers IPO presents an intriguing investment opportunity in the Indian liquor industry. With a strong brand presence, diverse product portfolio, and expansion plans in the premium segment, the company is poised for growth. Investors keen on tapping into the IMFL market and exploring the potential of Allied Blenders can consider this IPO as a strategic investment choice.
