Grey market is indicating profit, still investor enthusiasm is not high, this IPO got subscribed only half on the first day

Allied Blenders and Distillers IPO opened for retail investors yesterday i.e. on 25th June. Investors’ enthusiasm for this IPO is cold. On the first day, this IPO got subscribed only 0.51 percent. The special thing is that in the grey market, unlisted shares of Allied Blenders IPO are trading at a premium. There are still two more days left to invest in the issue. The IPO will close on 27th June. Through this issue, the company wants to raise Rs 1,500 crore.

The portion reserved for Qualified Institutional Buyers (QIB) of Allied Blenders IPO was subscribed 0.02 times, Non Institutional Investors (NII) portion was subscribed 0.87 times and retail investors 0.63 times. Under the issue, fresh equity shares worth Rs 1,000 crore will be issued. Apart from this, shares worth Rs 500 crore of existing shareholders will be sold under OFS.

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Minimum ₹14,893 will have to be invested
The price band of Allied Blenders IPO is ₹267-₹281. A retail investor can bid for at least one lot i.e. 53 shares. If a bid is made for 1 lot as per the upper price band of the IPO of ₹281, then ₹14,893 will have to be invested. On the other hand, if a retail investor applies for maximum 13 lots i.e. 689 shares, then ₹193,609 will have to be invested as per the upper price band.

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Here the money raised from the IPO will be used
Allied Blenders & Distillers will use the Rs 720 crore from the IPO to repay the debt. Apart from this, the remaining money will be used to meet general corporate purposes. As of December 2023, the company had a debt of about Rs 808 crore.

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Company Profile
Allied Blenders & Distillers is one of the largest Indian Made Foreign Liquor (IMFL) manufacturing companies in the country. The company’s portfolio includes 16 brands of whiskey, brandy, rum and vodka. Officers Choice Whiskey, Sterling Reserve and Officers Choice Blue are quite famous among them. In the financial year 2022-23, a net profit of Rs 1.6 crore has been recorded, which is 8.5% more than the previous year. During the same period, revenue (excluding excise duty) grew by 17.2% to Rs 3,146.6 crore.