Allied Blenders IPO: Liquor maker shares list at 13.8% premium

Shares of Indian-made foreign liquor (IMFL) maker Allied Blenders & Distillers Ltd (ABDL) had a muted start on the bourses as its shares were listed at 13.8% and 13.2% premium on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), respectively.

On the BSE, the scrip opened at ₹318, up 13.8%, and hit the day's high at ₹324.40, taking the company's m-cap to ₹8,643.04 crore. However, during the intra-day trade at 1.07 PM, the shares settled below the listing price at ₹308.80, up 9.89% over the issue price of ₹281 and down 2.92% from today's opening.

"The equity shares of Allied Blenders and Distillers Ltd (Scrip Code: 544203) are listed and admitted to dealings on the Exchange in the list of 'B' Group Securities," the company informed via an exchange filing.

On the NSE, shares of ABD are currently (1.12 pm) trading 3.05% down compared to the opening price of ₹320. The scrip is trading up 9.4% compared to the issue price on the stock exchange.

ABD’s price band for its IPO was ₹267-281 per equity share and raised ₹1,500 crore. The issue was a combination of a fresh issue of 3.56 crore shares worth ₹1,000 crore and an offer for sale (OFS) of 1.78 crore shares worth ₹500 crore. The overall issue of ABD was subscribed 23.55 times, with qualified institutional buyers quota booked 50.37 times; non-institutional investors 32.40 times; and retail quota 4.51 times.

Allied Blenders and Distillers claims to be the largest Indian-owned Indian-made foreign liquor and the third-largest IMFL company in India, in terms of annual sales volumes between fiscal 2014 and fiscal 2022. It says it is one of the only four spirits companies in India, with a pan-India sales and distribution footprint, a leading exporter of IMFL, and had an estimated market share (in terms of sales volume) of 11.8% in the Indian whisky market for fiscal 2023.

As of December 31, 2023, the company's product portfolio comprised 16 major brands of IMFL across whisky, brandy, rum and vodka, including brands like Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue and ICONiQ Whisky, among others. As of March 31, 2023, its products were retailed across 79,329 retail outlets across 30 states and UTs in India.

ABDL’s distillery in Rangapur, Telangana, is spread over 74.95 acres with a built-up area of over 25,000 square meters. As of December 31, 2023, it relied on 32 bottling facilities, including bottling facilities and contract bottling facilities.

The company's profit for nine months ending December 31, 2023, stood at ₹4.2 crore, while its FY23 profit was ₹1.6 crore. Revenue for M9 FY24 was ₹5,911 creo, while its FY23 revenue stood at ₹7,105 crore.