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The ₹1,500 crore initial public offering of Allied Blenders & Distillers Ltd. was subscribed 0.51 times or 55 per cent on Day 1 of opening on Tuesday. The IPO, which consists of a fresh issue of ₹1,000 crore and an offer for sale (OFS) of up to ₹500 crore by promoters, has a price band of ₹267-281. It closes on June 27.
Investors can bid for a minimum of 53 equity shares and multiples of 53 equity shares thereafter.
The offer is being made through the Book-Building Process, wherein not more than 50 per cent of the offer shall be available for allocation to Qualified Institutional Buyers, not less than 15 per cent of the net offer shall be available for allocation to Non-Institutional Bidders, and not less than 35 per cent of the offer shall be available for allocation to retail investors.
The portion reserved for QIB received a negligible response of 0.02 times while NIIs and retail investors quota saw 0.87 times and 0.63 times, respectively. The IPO which has reservation of employees saw the portion subscribing over 2 times. The Maharashtra-based company has reserved shares worth ₹3 crore for its employees who will enjoy a discount of ₹26 a share to the final IPO price.
As part of its IPO, Allied Blenders—an Indian-owned, Indian-made foreign liquor company with a product range that includes five main categories—on Monday garnered ₹449.1 crore from anchor investors. The company allocated 1,59,82,206 shares at ₹281 a share to anchor investors.
Foreign and Domestic Institutions who participated in the anchor were Nippon Life MF, JM Financial MF, LIC MF, Jupiter Indian Fund, The Jupiter Global Fund MF, Troo Capital Fund, BNP Paribas Financial Market, 360 One Special Opportunities Fund, Maiq MF, Authum Investment and Infrastructure Ltd, Winro Commercial (India) Ltd, Chartered Finance & Leasing Ltd, LC Radiance Fund VCC, Integrated Core Strategies (Asia) Pte Ltd, Societe Generale - ODI, and Goldman Sachs (Singapore) Pte - ODI.
The company plans to use the net proceeds from the fresh Issue prepay or arrange repayment of a portion of its existing borrowings for general corporate purposes.
ICICI Securities Limited, Nuvama Wealth Management Limited, and ITI Capital Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
The company’s flagship brand, Officer’s Choice Whisky, was launched in 1988 as part of its entry into the mass premium whisky segment. Between 2016 and 2019, Officer’s Choice Whisky was among the top-selling whisky brands globally in terms of annual sales volumes.
Over the years, they have expanded and introduced products across various categories and segments. As of December 31, 2023, their product portfolio comprised 16 major IMFL brands, including whisky, brandy, rum, and vodka. Certain of their brands, such as Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky, are ‘Millionaire Brands’ or brands that have sold over a million 9-litre cases in one year.
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