Allied Blenders and Distillers makes D-Street debut, lists at 13.8% premium to IPO price

Allied Blenders and Distillers, the manufacturer of Officer’s Choice whisky, marked its debut on the Dalal Street on Tuesday, July 2, with the shares listing at premium of over 13% against the IPO price.

At the National Stock Exchange (NSE), the shares opened at ₹320 apiece, up 13.8% as against the upper end of IPO price band of ₹281.

On the BSE, the shares listed at ₹318.1, which marked a premium of 13.2% against the IPO price.

The D-Street debut comes in the backdrop of an initial public offering (IPO), that was open for subscription between June 25 and June 27. The issue garnered 23.49 times subscription on the final day of bidding.

The IPO comprised a fresh issue of up to ₹1,000 crore and an offer for sale of up to ₹500 crore. The price band for the initial share sale was in the range of ₹267-₹281 a share.

The publication, citing stock market observers, said the GMP was floating around ₹41. This meant that the shares could get listed at ₹322 apiece, which was 15% higher as compared to the upper end of IPO price band of ₹281, the report had said.

How Allied Blenders IPO performed

The ₹1,500-crore initial share sale received bids for 92,49,01,092 shares against 3,93,71,669 shares on offer, according to NSE data.

The portion for Qualified Institutional Buyers (QIBs) got subscribed 50.37 times while the category for non-institutional investors attracted 32.35 times subscription. The Retail Individual Investors (RIIs) part got subscribed 4.42 times.

A day before the IPO's launch, the company said it raised ₹449 crore from anchor investors.

Proceeds from the fresh issue worth ₹720 crore will be used for the payment of debt, and a portion will be used for general corporate purposes.

With a market share of over 8% in the Indian-Made Foreign Liquor (IMFL) market by sales volumes in fiscal 2023, Allied Blenders and Distillers is engaged in the manufacturing, marketing and sale of alcoholic beverages in India and abroad.

The product portfolio of the firm comprises several brands of IMFL in whisky, brandy, rum and vodka.

Some of the major brands of the company include Officer's Choice Whisky, Sterling Reserve Whisky, Jolly Roger Rum, and Class 21 Vodka.