Allied Blenders and Distillers IPO Opens This Week: Discover 10 Essential Details About the Rs 1,500-cr Issue

Business Overview: Allied Blenders and Distillers holds over 8% market share in India’s IMFL (Indian-made foreign liquor) market as of fiscal 2023. The company manufactures and sells various alcoholic beverages including whisky, brandy, rum, and vodka.

Industry Overview: India’s alcohol market is predominantly focused on distilled spirits, with over 92% consumption in this category. The market has been growing steadily, reaching an estimated 3.12 litres per capita consumption of pure alcohol in 2023.

IPO Size: The IPO consists of a fresh equity sale of Rs 1,000 crore and an offer for sale (OFS) of 1.77 crore shares.

Price Band: The IPO price range is set between Rs 267 to Rs 281 per share, with bidding available in lots of 53 shares. The company aims to raise Rs 1,500 crore at the upper end of the price band.

Structure: Qualified institutional buyers (QIBs) can bid for 50% of the public offer, while retail investors have a 35% allocation, and non-institutional investors (NIIs) have 15%.

Financial Performance: In the nine months ending December 2023, Allied Blenders and Distillers recorded a 9% year-on-year revenue growth, reaching Rs 5,915 crore. Profit after tax during the same period increased by 50% year-on-year to Rs 4.2 crore.

Objects of the IPO: The company plans to utilize Rs 720 crore from the IPO proceeds to repay debt, with the remainder allocated for general corporate purposes.

Current GMP: As per market analysts, the current Grey Market Premium (GMP) for Allied Blenders and Distillers stands at Rs 50 in the unlisted market.

Lead Managers: ICICI Securities, Nuvama Wealth Management, and ITI Capital are the book running lead managers for the IPO.

Allotment and Listing Date: Share allotment is expected to be finalized by June 28, with listing on stock exchanges scheduled for July 2.