Allied Blenders and Distillers IPO was subscribed 23.5 times(X) overall. The QIB (Qualified Institutional Buyers) portion was subscribed 50.37 times. Further, NII (Non-Institutional Investors) portion was subscribed 32.40 times. Allied Blenders and Distillers IPO is expected to announce its share allotment status today, Friday, June 28, 2024. ABD Shares are expected to be listed on stock exchanges on July 2, 2024.
Allied Blenders and Distillers IPO subscribed 23.5 times, why?
Allied Blenders and Distillers (ABD) IPO received a strong response from investors, getting subscribed 23.5 times, due to several factors:
- Strong Market Position: ABD is one of the largest Indian-owned spirits companies with a significant market share in the whisky segment. Its flagship brand, Officer’s Choice, is among the top-selling whiskies in the country. This strong brand recognition and market presence attracted investors.
- Growth Potential: The Indian spirits market is expected to grow significantly in the coming years, driven by factors like increasing disposable incomes, changing consumer preferences, and a growing young population. Investors see ABD well-positioned to capitalize on this growth.
- Attractive Valuation: The Allied Blenders and Distillers IPO was priced at a reasonable valuation compared to its peers in the industry. This made it an attractive proposition for both institutional and retail investors.
- Diversified Product Portfolio: ABD offers a wide range of products across different spirits categories, including whisky, brandy, rum, and vodka. This diversification helps the company mitigate risks and cater to a broader consumer base.
- Strong Distribution Network: ABD has a well-established distribution network across India, reaching even smaller towns and villages. This extensive reach ensures wider availability of its products and contributes to its sales growth.
- Positive Market Sentiment: The overall positive sentiment in the stock market also played a role in the strong subscription for the Allied Blenders and Distillers IPO. Investors are looking for opportunities to invest in growing companies, and ABD IPO presented such an opportunity.
- Investor Confidence: The company’s track record of consistent growth, efficient operations, and experienced management instilled confidence in investors, leading to a higher demand for the IPO.
It’s important to note that while the Allied Blenders and Distillers IPO received a strong response, the actual performance of the company’s stock after listing will depend on various factors, including its financial performance, market conditions, and overall economic environment.