Allied Blenders and Distillers Ltd. (ABD) is an Indian alcoholic beverages company headquartered in Mumbai, India. It is the largest Indian-owned spirits company and the third largest spirits company in the world by volume. ABD is a major distributor of whisky, rum, brandy, vodka, and other spirits and exports to 22 countries around the world.
Allied Blenders and Distillers Ltd. (ABD) is proceeding with its initial public offering (IPO) with the following details:
- Price band: ₹267 to ₹281 per equity share of face value ₹2.
- Subscription dates: June 25, 2024 to June 27, 2024.
- Anchor investor allocation date: June 24, 2024.
- Listing date: Expected to be July 2, 2024 on BSE and NSE.
The ABD IPO aims to raise up to ₹1,500 crores, with a fresh issue of ₹1,000 crores and an offer for sale of ₹500 crores. The minimum lot size for bidding is 53 shares.
Allied Blenders and Distillers IPO GMP:
The Grey Market Premium (GMP) for Allied Blenders and Distillers Ltd. (ABD) IPO is currently fluctuating between ₹60 and ₹80. This means that the shares are trading at a premium of ₹60 to ₹80 over the IPO price band of ₹267-₹281 in the unofficial grey market.
Analysts view on Allied Blenders and Distillers IPO
Analysts have mixed views on the Allied Blenders and Distillers (ABD) IPO, with some highlighting its potential for growth and others expressing concerns about its valuation and financial performance.
ABD Positive Views:
Growth Potential: Analysts recognize ABD’s strong position in the Indian alcoholic beverage market, with a leading market share and popular brands like Officer’s Choice. The company’s focus on premiumization and expanding distribution network are seen as key growth drivers.
Strong Financials: ABD has demonstrated robust financial performance, with significant revenue and profit growth in recent years. This has led some analysts to believe in its ability to generate returns for investors.
ABD Negative Views:
High Valuation: Some analysts find the IPO’s valuation to be expensive compared to its peers in the industry. The price band of ₹267-₹281 translates to a high price-to-earnings ratio, raising concerns about potential overvaluation.
Financial Concerns: While ABD has shown growth, analysts have noted declining revenue, profitability, and return on net worth in previous years. These concerns raise questions about the sustainability of its financial performance.
Conclusion: As par Analysts view, the decision to invest in the ABD IPO depends on individual risk appetite and investment goals. Investors who believe in the company’s growth potential and are willing to accept the risks associated with high valuations may consider subscribing to the IPO. However, those concerned about the valuation and financial performance may choose to wait for more clarity on the company’s future prospects.
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