In a toast to its success, Allied Blenders and Distillers Limited (ABDL) clinked its glasses on the Indian stock market with a positive debut yesterday. The country’s third-largest Indian-made foreign liquor (IMFL) company by sales volume entered the ring on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Tuesday, July 2nd.
Living up to pre-listing predictions, ABDL shares opened strong, exceeding the issue price of ₹281 per share. On the NSE, the stock debuted at ₹320, reflecting a nearly 14% premium. A similar trend was witnessed on the BSE, with shares opening at ₹318.10. Market analysts had anticipated an opening range of ₹315 to ₹333, and ABDL firmly landed within those estimates.
The IPO, which concluded on June 27th, was met with enthusiastic participation, receiving over 23 times subscription. The company raised a total of ₹1,500 crore through the offering, with a fresh issue of ₹1,000 crore and an offer-for-sale component of up to ₹500 crore.
Experts attributed the positive debut to ABDL’s strong brand presence and foothold in the Indian liquor market. The company boasts a diverse portfolio encompassing whiskey, brandy, rum, vodka, and gin. This, coupled with the growing demand for IMFL in the country, instilled investor confidence.
While the initial listing is promising, analysts caution that the long-term performance of the stock will depend on various factors, including industry regulations, competition, and the overall market conditions. ABDL’s entry onto the stock market marks a significant milestone for the company. Whether it maintains its fizz or experiences a correction remains to be seen, but one thing’s for sure: investors are raising a glass to this initial success.