Allied Blenders and Distillers, the company behind the popular Officer’s Choice whiskey, launched its initial public offering (IPO) today, June 25th, 2024. This article will break down everything you need to know about the IPO, including the price, dates, and whether you should consider investing.
IPO Details:
- Price Band: ₹267 to ₹281 per share
- Issue Size: ₹1,500 crore
- Fresh Issue: ₹1,000 crore (money raised by the company)
- Offer for Sale (OFS): ₹500 crore (promoters selling their shares)
- Subscription Dates: June 25th to June 27th, 2024
- Listing Date (expected): July 2nd, 2024 (on BSE and NSE)
Should You Apply?
This is a decision you’ll need to make based on your own investment goals and risk tolerance. Here are some factors to consider:
- Financials: Allied Blenders and Distillers reported a net profit of ₹4.23 crore for the nine months ending December 31st, 2023, with a revenue of ₹5,914.98 crore. While the company is profitable, some analysts are cautious due to its high valuation based on the IPO price.
- Market Competition: The Indian liquor industry is quite competitive. How Allied Blenders and Distillers performs compared to rivals will be a key factor in its future success.
- Investment Horizon: If you’re looking for a short-term gain based on the GMP, this IPO might be tempting. However, for long-term investors, a thorough analysis of the company’s fundamentals is crucial.
Here are some resources to aid in your decision-making:
- The company’s IPO prospectus contains detailed financial information and future plans.
- Financial news websites and brokerage firms might offer IPO reviews and analyses.
Remember: Investing in the stock market always carries risk. Before applying for any IPO, conduct your own research and understand the potential risks involved.
Additional Points:
- The IPO is divided into three parts: 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors like yourself.
- You can apply for the IPO through your bank or online broker. The minimum purchase is set at 53 shares.
Conclusion:
The Allied Blenders and Distillers IPO is a chance to invest in a well-known Indian liquor company. However, a careful evaluation of the company’s financials, market competition, and your own investment goals is necessary before making a decision.