Liquor company made money on listing, Allied Blenders debuted in the market at 13% premium

IPO Market Latest News :Were you allotted shares in the Allied Blenders IPO? If yes, then there is good news for you. Shares of Allied Blenders and Distillers, a company that makes whiskey, brandy, gin, rum, vodka under many popular brand names including Officers Choice, have been listed strongly in the stock market today on July 2. The stock was listed on the BSE at a price of Rs 318, while the issue price was Rs 281. That is, the stock has given a return of 13 percent on listing. The size of the IPO was Rs 1500 crore. At the same time, it got a better response from the investors. Should shares be sold after listing gains?

Allied Blenders got 25 times subscription

Allied Blenders and Distillers’ IPO got a good response (Allied Blenders IPO Subscription Status). This IPO was subscribed 25 times overall. 35 percent of the IPO was reserved for retail investors and it was subscribed 4.63 times. While 50 percent of the quota was reserved for qualified institutional buyers and it was subscribed 53.01 times. At the same time, 15 percent of the IPO was reserved for non-institutional investors and it was subscribed 34.04 times. The portion reserved for employees was subscribed 10.16 times.

What are the strengths of the company

One of the largest IMFL companies in India with a diversified and contemporary product portfolio.

Strong brand identity.

Access to a wide pan India distribution network with the ability to scale.

The Indian IMFL industry is well positioned to weather the headwinds.

Supported by an experienced Board and Senior Management team and a committed employee base.

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Risks and concerns with the company

The company has experienced volatile fluctuations in PAT and PAT margin for the last year/period.

Increasing competition in the IMFL industry.

Increase in taxes or changes in tax calculation methods may impact demand for products and adversely affect business.

The company’s operations are subject to extensive central and state regulations.

The company has some contingent liabilities.

(Source: Swastika Investmart)

Stock Outlook

According to Shivani Nyati, Head of Wealth, Swastika Investmart, Allied Blenders & Distillers has a strong brand presence. The company has a diversified product portfolio and an all-India distribution network. However, the company’s financial performance has been unstable, including low profit margins and high debt levels. Apart from this, the Indian Made Foreign Liquor (IMFL) industry is facing increasing competition, possible tax hikes and a highly regulated environment. At the same time, the current valuation seems a bit high.

(Disclaimer: Investing or selling stocks is advised by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)