The much-anticipated IPO of Allied Blenders and Distillers, the makers of the popular Officer’s Choice whiskey, is gaining momentum. As of Wednesday, June 26th, the second day of bidding, the IPO has seen a significant increase in subscriptions. Here’s a breakdown of the latest developments and what you need to consider before investing.
The biggest news of the day is the overwhelming response from retail investors and non-institutional investors. By mid-morning, the non-institutional investor portion, which includes high net-worth individuals and corporate houses, was fully subscribed. Retail investors, which represent regular citizens like you and me, also showed strong interest, with their portion subscribed to over 60%. This indicates growing confidence in the company’s future prospects.
While the non-institutional and retail investor segments are leading the charge, the overall subscription for the IPO stands at around 77% as of now. This means that for every 100 shares offered, bids have been placed for 77. The portion reserved for Qualified Institutional Buyers (QIBs), which include big banks and mutual funds, remains relatively subdued with only 2% subscription. This could change on the final day of bidding.
It’s worth noting that the employee portion of the IPO was fully booked on the first day itself. This strong interest from employees reflects their confidence in the company’s growth potential.
The Grey Market Premium (GMP) is an unofficial indicator of the expected listing price of a share. In the case of Allied Blenders and Distillers, the GMP is currently hovering around ₹76 per share. This suggests that market observers believe the share price could list higher than the IPO price band of ₹267 to ₹281 per share. However, it’s important to remember that GMP is not a guaranteed prediction and should be taken with a grain of salt.
Should You Apply?
The strong subscription from retail and non-institutional investors indicates positive sentiment towards the IPO. However, the decision to invest ultimately depends on your individual financial goals and risk tolerance. Here are some factors to consider:
- Company Financials: Review the company’s financial statements to understand its revenue, profitability, and debt levels.
- Future Prospects: Research the future outlook for the Indian alcoholic beverage industry and Allied Blenders and Distillers’ position within it.
- Investment Horizon: Seeking short-term gains or long-term growth? IPOs can be quite volatile in the short term.
- Diversification: Consider how this investment fits within your overall portfolio.
Additional Resources:
- You can find the IPO prospectus and other relevant documents on the websites of the stock exchanges (NSE and BSE) and the company itself.
- For tailored investment guidance, speak with a financial advisor.
By carefully considering these factors and conducting your own research, you can make an informed decision about whether or not to invest in the Allied Blenders and Distillers IPO.