Allied Blenders and Distillers shares list at 14% premium over issue price

The IPO, which was a combination of fresh equity sale of Rs 1,000 crore and an offer for sale (OFS) of 1.77 crore shares, was subscribed over 20 times at close.

The proceeds from the fresh issue will be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings and balance for general corporate purposes.

With a share of over 8% in India made foreign liquor 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 across whisky, brandy, rum and vodka.

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Over the years, the company has expanded and introduced products across various categories and segments, having successfully leveraged its strength in the popular segment to launch successful brands.

While Allied Blenders boasts a strong brand presence, a diverse product portfolio, and an extensive panIndia distribution network, the company's financial performance has been volatile, characterized by low-profit margins and high debt levels, according to analysts.

"Additionally, the Indian Made Foreign Liquor (IMFL) industry faces intensifying competition, potential tax hikes, and a highly regulated environment," said Swastika Investmart.

For the nine months ended December 2023 period, the company clocked revenue growth of 9% year-on-year at Rs 5,915 crore. Meanwhile, the profit after tax in the same period increased 50% year-on-year to Rs 4.2 crore.

ICICI Securities, , and ITI Capital acted as the book running lead managers to the issue.

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