Allied Blenders IPO subscribed over 23 times on Day 3 so far; GMP falls sharply on last day
Allied Blenders IPO subscribed over 23 times on Day 3 so far; GMP falls sharply on last day
The grey market premium (GMP) of Allied Blenders and Distillers Ltd. fell sharply in the unlisted market on Thursday (June 27) despite the initial public offering (IPO) witnessing a decent response on the third and final day of the bidding process.
The company's shares are trading with a premium of ₹55, down from ₹77 the previous day.
The ₹1,500-crore initial share sale, which opened for subscription on June 25, closes for subscription today (June 27).
The issue was overall subscribed 23.45 times so far, with investors bidding for 92.31 crore equity shares, compared to the 3.93 crore shares offered for the subscription by 4:40 pm on Thursday.
The quota for retail investors was booked 4.35 times, while the portion reserved for non-institutional investors saw a subscription of 32.32 times. However, the quota set aside for qualified institutional bidders (QIBs) was booked 50.37 times. The employees portion saw 9.51 times subscription.
The Maharashtra-based company had raised ₹449 crore from institutional investors via anchor book on June 24. Those who participated in the anchor book included Goldman Sachs, Societe Generale, Nippon Life India, LIC Mutual Fund, BNP Paribas, 360 One Special Opportunities Fund, among others.
The company sold its shares in the range of ₹267 to ₹281 apiece with 53 shares in one lot.
Analysts have pegged the Mumbai-based company's market capitalisation at ₹7,860 crore post-issue.
The public offer comprised fresh issuance of equity shares worth ₹1,000 crore and an offer for sale of shares to the tune of ₹500 crore by promoters.
As a part of the OFS, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and Neesha Kishore Chhabria sold shares.
The capital raised from the fresh issue worth ₹720 crore will be used for the payment of debt. Besides, a portion will be used for general corporate purposes.
The total debt on the company's books was around ₹808 crore as of December 2023.
Indian-made Allied Blenders and Distillers is a foreign liquor manufacturer. The company sells whiskey, brandy, rum, and vodka—four types of foreign liquor created in India. Furthermore, they market drinking water in packages under the Sterling Reserve, Officer's Choice, and Officer's Choice Blue brands.
The company's topline rose 8% year-on-year and bottomline grew by 47% for the nine months period that ended December 2023.