Allied Blenders and Distillers (ABD), the company behind popular whiskey brands like Officer’s Choice and Sterling Reserve, is all set to enter the public market through an Initial Public Offering (IPO). Here’s a breakdown of the key details for investors considering participating in this upcoming share offering.
IPO Price and Dates
- The price band for ABD’s IPO has been set at ₹267 to ₹281 per share. Investors will need to spend an amount within this specified range for each share they purchase.
- The IPO will open for subscription on June 25th, 2024, and close on June 27th, 2024. So, if you’re interested, mark your calendars!
ABD is the largest Indian-owned manufacturer of Indian-made foreign liquor (IMFL) and boasts the third-highest sales volume in the country. They’ve been around for a while, with a strong presence in the Indian market since 2014.
Here are some additional highlights about ABD:
- Extensive sales and distribution network across India, reaching a wide customer base.
- A prominent exporter of IMFL, making a mark in the international market.
- Holds a significant market share, estimated at 11.8% of the Indian whiskey market in 2023.
How the Company Plans to Utilize the Funds:
The funds raised through the IPO will be used for two main purposes:
- Debt repayment: ABD plans to use a portion of the money to pay off some of its existing debt. This will help improve their financial health.
- General corporate purposes: The remaining funds will be used for various business needs, such as expansion plans or investments in new technologies.
Important Dates to Remember
- June 24th: Anchor allotment (a specific set of investors who get shares before the IPO opens)
- June 25th – 27th: IPO subscription window opens for regular investors
- June 28th: Allotment of shares is finalized
- July 1st: Refunds for unsuccessful applications are initiated
- July 2nd (tentative): Shares are credited to investor demat accounts and listed on stock exchanges (BSE and NSE)
Things to Consider Before Investing
While the upcoming IPO might seem exciting, it’s important to do your research before investing. Consider these important factors:
- Company’s Financial Performance: Look at ABD’s past financial performance, including revenue and profitability. While their profit increased in the last financial year, their revenue saw a slight decline.
- Market Conditions: Consider the overall health of the stock market and the performance of similar companies in the liquor industry.
- Your Investment Goals: Align your investment with your financial goals and risk tolerance.
Remember: IPOs can be a good way to invest in growing companies, but they also involve some risk. Conduct thorough research before making any decisions.