The initial public offering (IPO) ofAllied Blenders (Allied Blenders and Distillers Limited) opened for bidding on Tuesday, looking to raise Rs 1,500 crore through a combination of fresh issue and an offer for sale.
Allied Blenders IPO is a book-built issue offering a fresh issue of 3.56 crore shares amounting to Rs 1,000 crore and an offer for sale of 1.78 crore shares totalling Rs 500 crore.
The liquor company’s IPO raised Rs 449.10 crore from anchor investors on Monday.
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Allied Blenders IPO details
The price band for Allied Blenders IPO is set at Rs 267 to Rs 281 per share and will close for bidding on June 27, 2024.
Retail investors need to apply for a minimum of 53 shares, requiring an investment of Rs 14,893. Small Non-Institutional Investors (sNII) need to apply for at least 14 lots, totalling 742 shares, which requires an investment of Rs 208,502.
Large Non-Institutional Investors (bNII) need to apply for a minimum of 68 lots, totalling 3,604 shares, amounting to an investment of Rs 1,012,724.
The allotment is set to be finalised on Friday, June 28, 2024. Shares of Allied Blenders are expected to list on the BSE and NSE on Tuesday, July 2, 2024.
ICICI Securities Limited, Nuvama Wealth Management Limited, and Iti Capital Ltd are the book running lead managers for this IPO. The registrar for the issue is Link Intime India Private Ltd.
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Should you subscribe?
“The company’s financial performance has been volatile, characterised by low-profit margins and high debt levels. Additionally, the Indian Made Foreign Liquor (IMFL) industry faces intensifying competition, potential tax hikes, and a highly regulated environment,” said SwastikaInvestmart.
“The current IPO valuation appears exceptionally high, with a P/E of 4014x. Given the aforementioned risks and the high valuation, we recommend avoiding the Allied Blenders and Distillers IPO,” it advised.
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Allied Blenders IPO latest GMP
The grey market premium (GMP) for Allied Blenders IPO was Rs 80 as of June 25, 2024.
With a price band set at Rs 281, the estimated listing price is Rs 361 (cap price plus the current GMP). This translates to an expected gain of 28.47% per share.
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