Allied Blenders and Distillers Limited IPO Review
Overview
Allied Blenders and Distillers Limited (ABD) is set to launch its Initial Public Offering (IPO) with a combination of a fresh issue and an offer for sale. Established in 2008, ABD is a significant player in the alcoholic beverages industry, primarily known for its flagship brand "Officer's Choice". The IPO will provide investors an opportunity to be part of this established company.
IPO Dates
| Event |
Date |
| IPO Open Date |
June 25, 2024 |
| IPO Close Date |
June 27, 2024 |
| Basis of Allotment |
June 28, 2024 |
| Initiation of Refunds |
July 1, 2024 |
| Credit of Shares to Demat |
July 1, 2024 |
| Listing Date |
July 2, 2024 |
| Cut-off time for UPI mandate confirmation |
5 PM on June 27, 2024 |
Allied Blenders IPO Details
| Particulars |
Details |
| Face Value |
₹2 per share |
| Price Band |
₹267 to ₹281 per share |
| Lot Size |
53 shares |
| Total Issue Size |
53,380,783 shares |
| Fresh Issue |
35,587,189 shares |
| Offer for Sale |
17,793,594 shares |
| Employee Discount |
₹26 per share |
| Issue Type |
Book Built Issue IPO |
| Listing At |
BSE, NSE |
GMP (Grey Market Premium) Live Rates
| Date |
GMP |
| Today |
₹55 |
| 27 June |
₹75 |
| 26 June |
₹85 |
| 25 June |
₹80 |
| 24 June |
₹75 |
| 23 June |
₹50 |
| 21 June |
₹50 |
| 20 June |
₹50 |
Company Background
Allied Blenders and Distillers Limited, headquartered in Mumbai, Maharashtra, is renowned for its production and distribution of alcoholic beverages. The company's flagship brand, "Officer's Choice", is one of the leading brands in India. The promoters of the company include Kishore Rajaram Chhabria, Bina Kishore Chhabria, Resham Chhabria Jeetendra Hemdev, and entities like Bina Chhabria Enterprises Private Limited, BKC Enterprises Private Limited, Oriental Radios Private Limited, and Officer’s Choice Spirits Private Limited.
Allied Blenders Financial Highlights
The company's financial health is pivotal for potential investors. Below is a summary of the restated consolidated financial statements for ABD for the period ended December 31, 2023, and the financial years ended March 31, 2023, 2022, and 2021:
| Particulars |
December 31, 2023 |
March 31, 2023 |
March 31, 2022 |
March 31, 2021 |
| Assets |
2,741.39 |
2,487.70 |
2,248.35 |
2,298.57 |
| Revenue |
5,914.98 |
7,116.75 |
7,208.17 |
6,397.81 |
| Profit After Tax |
4.23 |
1.60 |
1.48 |
2.51 |
| Net Worth |
409.26 |
406.10 |
404.10 |
381.78 |
| Reserves and Surplus |
360.43 |
357.28 |
356.99 |
327.85 |
| Total Borrowing |
798.11 |
780.82 |
846.91 |
954.74 |
Allied Blenders IPO Lot Size and Investment
Investors can bid for a minimum of 53 shares and in multiples thereof. The minimum and maximum investment by retail investors and HNIs are as follows:
| Application |
Lots |
Shares |
Amount |
| Retail (Min) |
1 |
53 |
₹14,893 |
| Retail (Max) |
13 |
689 |
₹193,609 |
| S-HNI (Min) |
14 |
742 |
₹208,502 |
| S-HNI (Max) |
67 |
3,551 |
₹997,831 |
| B-HNI (Min) |
68 |
3,604 |
₹1,012,724 |
Key Strengths
- Established Brand: ABD's flagship brand "Officer's Choice" is highly recognized in the market.
- Strong Distribution Network: Extensive distribution channels across India.
- Experienced Management: The promoters and management team have extensive industry experience.
- Financial Resilience: Consistent revenue generation and profitability.
Risks and Concerns
- Market Competition: The alcoholic beverages industry is highly competitive.
- Regulatory Risks: Changes in regulations can impact operations and profitability.
- Economic Factors: Economic downturns can affect consumer spending on alcoholic beverages.
Use of IPO Proceeds
The funds raised through the IPO will primarily be used for:
- Debt Repayment: Reducing the company's debt burden.
- Business Expansion: Financing growth and expansion plans.
- General Corporate Purposes: Supporting overall business operations and strategic initiatives.
Allied Blenders IPO Subscription Stats
QIB: 53.01 times
NII: 34.09
Retail: 4.73
Employe: 10.44
Total: 24.85
Conclusion
Allied Blenders and Distillers Limited's IPO presents a compelling investment opportunity for those looking to invest in a well-established company in the alcoholic beverages industry. The company's strong brand presence, extensive distribution network, and experienced management team are key strengths. However, investors must consider the associated risks and the company's financial health. The IPO's success will depend on market conditions and investor sentiment during the subscription period.
Subscription Recommendation
Given the current GMP rates and the company's potential, investors are advised to:
- Evaluate Financial Metrics: Analyze the company's financial statements and growth prospects.
- Consider Risk Factors: Assess market risks, competition, and economic conditions.
- Stay Informed: Monitor daily subscription rates and market news related to the IPO.
Investing in Allied Blenders and Distillers Limited's IPO could be a valuable addition to a diversified investment portfolio, particularly for those with an interest in the alcoholic beverages sector.
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