The Initial Public Offering of Allied Blenders & Distillers Limited was fully subscribed on the second day of bidding. Overall the issue was subscribed 1.51 times.
The issue received bids of 5,96,69,149 shares against the offered 3,93,71,669 equity shares, at a price band of ?267-281, according to the data available on the stock exchanges.
Employee Portion was subscribed the most with 5.09 times. Non-Institutional Investors Portion and Retail Portion were subscribed 2.98 times and 1.65 respectively, whereas Qualified Institutional Buyer Portion was subscribed 0.14. The issue kicked off for subscription on Tuesday, June 25, 2024, and will close on Thursday, June 27, 2024.
A day before the opening of the issue, Allied Blenders & Distillers Ltd raised Rs 449.10 crores from anchor investors. Foreign and Domestic Institutions who participated in the anchor were Nippon India Small Cap Fund, Jupiter India Fund, The Jupiter Global Fund, JM Financial Mutual Fund, LIC MF Dividend Yield Fund, LIC MF Balance Advantage Fund, Winro Commercial (India) Ltd, Chartered Finance and Leasing Ltd, Authum Investment and Infrastructure Ltd, Troo Capital Ltd, 360 One Special Opportunities Fund, BNP Paribas Financial Markets, Goldman Sachs (Singapore) PTE - ODI, Societe Generale -ODI, Integrated Core Strategies (Asia) PTE Ltd, LC Radiance Fund VCC and MAIQ Growth Scheme.
Leading brokerage firms like Anand Rathi, SBI Securities, BP Equities, Choice Equity, and Marwadi Shares, have given a "Subscribe" rating to the issue highlighting the company is a leading Indian Made Foreign Liquor (IMFL) company and the third largest in India by sales volume, has received positive IPO recommendations. The company boasts well-known brands like Officer's Choice Whisky and plans to use IPO proceeds to reduce debt, which is expected to enhance profit margins. Despite high short-term valuations, it is recommended for long-term investment due to its promising prospects.
As per a Pre IPO note by Elara Capital, the company is on track wrt to its premiumization strategy, introducing new brands and focusing on innovation. The company will benefit from improved EBITDA margin profile. Post listing, market cap of ABD basis the upper end of share price band, will be INR 79 bn which results in 36x FY24 EV/EBITDA. Consistent double digit volume growth along with improved margins will help converge valuation discount v/s peers. Furthermore, high interest debt reduction will help boost operational margins helping increase PAT margins.
ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the issue. The equity shares are proposed to be listed on the BSE and NSE. |
