Allied Blenders and Distillers IPO Sails Through, Subscription Closes Today

The much-anticipated IPO of Allied Blenders and Distillers (ABDL), the company behind the iconic Officer’s Choice whiskey brand, is set to close today, June 26th. The public offering, which opened for subscription on June 25th, has already garnered strong investor interest, with the issue being fully subscribed on the second day itself.

Strong Showing for a Domestic Giant:

ABDL, India’s third-largest Indian-made foreign liquor (IMFL) company by sales volume, is looking to raise a total of ₹1500 crore through the IPO. The issue is a combination of fresh issue of ₹1000 crore and an offer for sale (OFS) of ₹500 crore by promoters and other selling shareholders.

The price band for the IPO has been set at ₹267 to ₹281 per share. This translates to a market capitalization of approximately ₹4,400 crore to ₹4,600 crore for the company upon listing.

Analyst Views on Valuation:

Market analysts have expressed mixed opinions on the valuation. Some believe the price band reflects ABDL’s strong brand presence and market leadership in the IMFL segment. Others recommend a cautious approach, suggesting a deeper analysis of the company’s financials and future growth plans before subscribing.

Last Chance to Apply:

With today marking the final day for applications, potential investors who haven’t yet subscribed to the IPO have a limited window to do so. Those interested can approach their brokers or apply online through their banking platforms.

Listing Expected on July 2nd:

Assuming a smooth allotment process, shares of ABDL are expected to list on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) by July 2nd, 2024. Whether the listing brings cheers or disappointment for investors will depend on the company’s performance and the overall market conditions.

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