Allied Blenders and Distillers IPO Review

 
Allied Blenders and Distillers IPO Review

IPO Open Date: June 25, 2024

IPO Close Date: June 27, 2024

IPO Price: ₹267 to ₹281 per share

Lot Size: 53 Shares

Listing: July 02, 2024

Allied Blenders is scheduled to hit the market on June 25, 2024 and close on June 27, 2024. Allied Blenders plans to raise around ₹1,500.00 Cr through an IPO with a sale of up to 53,380,783 equity shares of ₹2 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.

Allied Blenders and Distillers, established in 2008, is a prominent Indian-made foreign liquor company known for offering a diverse range of products including whisky, brandy, rum, and vodka. They also market packaged drinking water under well-known brands such as Officer's Choice, Officer's Choice Blue, and Sterling Reserve. Officer's Choice Whisky, introduced in 1988, marked the company's entry into the mass premium whisky market and has since become one of the highest-selling whisky brands globally in terms of annual sales volumes between 2016 and 2019.

By December 31, 2021, Allied Blenders had expanded its market presence to 22 international destinations across the Middle East, North and South America, Africa, Asia, and Europe. The company's operational hub in Rangapur, Telangana, spans 74.95 acres with a built-up area exceeding 25,000 square meters. With an annual distillation capacity of 54.75 million litres of extra neutral alcohol (ENA), essential for their product manufacturing, they also leverage a network of 30 bottling facilities nationwide, comprising both self-owned and contract bottling units to cater to their production needs effectively.

Allied Blenders



Allied Blenders IPO Details

Allied Blenders IPO opens on June 25, 2024, and closes on June 27, 2024. The Listing date for Allied Blenders IPO is on July 02, 2024. The price band for IPO is ₹267 to ₹281 per share and lot size of 53 Shares.

IPO DateJune 25, 2024 to June 27, 2024
Listing DateJuly 02, 2024
Price₹267 to ₹281 per share
Lot Size53 Shares
Issue Size₹1,500.00 Cr
Face Value₹2 per share

Allied Blenders IPO Tentative Timetable

Allied Blenders opening date is June 25, 2024 and close date is June 27, 2024. The IPO allotment date is June 28, 2024. The refund initiation of IPO is on July 01, 2024. The credit of shares in demat account is on July 01, 2024. The listing date is on July 02, 2024.

EventDate
IPO OpeningJune 25, 2024
IPO ClosingJune 27, 2024
IPO Allotment DateJune 28, 2024
Refund InitiationJuly 01, 2024
Shares Credit to DematJuly 01, 2024
Lisiting DateJuly 02, 2024

Allied Blenders IPO Lot Size

Lot Size of this IPO is 53 shares. A retail-individual investor can apply for up to 13 lots (689 shares or ₹193,609).

CategoryLotsSharesAmount
Retail(Minimum)140₹14,760
Retail(Maximum)13689₹193,609
S-HNI (Minimum)14742₹208,502
B-HNI (Minimum)683,604₹1,012,724

Allied Blenders IPO Promoter Holding

Pre Issue Share Holding96.21%
Post Issue Share Holding80.91%

Allied Blenders IPO Review

ABD's financial performance has seen mixed results. For the fiscal year ending March 31, 2023, the company's revenue slightly decreased by 1.27% to Rs. 7,116.75 crore from Rs. 7,208.17 crore in FY22. However, the profit after tax (PAT) increased by 8.47% to Rs. 1.60 crore from Rs. 1.48 crore in FY22. For the nine months ending December 31, 2023, the company reported a revenue of Rs. 5,914.98 crore and a PAT of Rs. 4.23 crore.

The company's total assets as of December 31, 2023, stood at Rs. 2,741.39 crore, with a net worth of Rs. 409.26 crore. ABD has a high debt-to-equity ratio of 1.88, indicating significant leverage. The company’s return on equity (ROE) is low at 1.03%, whereas the return on capital employed (ROCE) is more favorable at 24.35%, reflecting efficient use of capital despite the high leverage. ABD’s IPO aims to raise Rs. 7,859.59 crore, with proceeds intended for prepayment or scheduled repayment of certain outstanding borrowings and general corporate purposes. The IPO is priced at a high valuation, with a pre-IPO P/E ratio of 4284.57x based on FY23 earnings, reducing to 1393.87x post-IPO. This aggressive pricing suggests a premium valuation, which may not align with the company's modest profit margins and high leverage.

Allied Blenders and Distillers Ltd. operates in a competitive and regulated industry, with a strong product portfolio and significant market presence. However, the company's financial performance shows a decline in revenue and modest profitability, coupled with high debt levels. The IPO’s aggressive pricing, reflected in the extremely high P/E ratios, makes this a high-risk investment. Given these factors, well-informed investors should exercise caution. While the company's strong brand and extensive distribution network are positives, the high valuation and financial leverage present significant risks. There may be no harm in skipping this high-risk, pricey issue, especially for conservative investors. However, those with a higher risk appetite and a long-term investment horizon may consider a moderate allocation, banking on the company's potential to leverage its strong market presence and global reach for future growth.

Allied Blenders IPO Subscription Status (Bidding Details)

Table not found

Allied Blenders IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Allied Blenders IPO FAQs

What is Allied Blenders IPO?

Allied Blenders is issuing 53,380,783 equity shares with a face value of ₹2 each, totaling up to ₹1,500.00 Cr. The shares are being offered at a price of ₹267 to ₹281 each, with a minimum order quantity of 53 shares.

Link Intime India Private Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Allied Blenders IPO will open?

Allied Blenders will open on June 25, 2024 for QIB, NII, and Retail Investors.

When Allied Blenders IPO will end?

Allied Blenders will end on June 27, 2024.

What is Allied Blenders IPO Size?

Allied Blenders IPO size is 1,500.00 Cr.

What is Allied Blenders IPO Price Band?

Allied Blenders price band is ₹351 to ₹369 per share.

What is the Allied Blenders IPO Allotment Date?

Allied Blenders allotment date is June 28, 2024.

What is the Allied Blenders IPO Listing Date?

Allied Blenders listing date is July 02, 2024. The IPO is to be listed on BSE and NSE.

How to Allied Blenders IPO through Zerodha?

To apply for the IPO “Allied Blenders” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Allied Blenders IPO through Upstox?

To apply for the IPO “Allied Blenders” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Allied Blenders IPO Allotment Status?

For Allied Blenders IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Allied Blenders IPO GMP?

You can check out here: Allied Blenders IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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