Allied Blenders IPO booked 10% so far on Day 1. Check subscription, GMP and other details
initial public offer (IPO) of Allied Blenders & Distillers (ABDL), which opened for subscription today, has been booked 10% so far on the first day of the bidding process.
Retail investors are driving the demand with a subscription of 15%, followed by non-institutional investors, whose category was booked by 11%. The part reserved for employees was booked 60% while Qualified Institutional Buyers (QIBs) have not yet subscribed to the issue.
The issue is a combination of fresh equity sale of Rs 1,000 crore and an offer for sale (OFS) of 1.77 crore shares.
Under the OFS, promoters Bina Kishore Chhabria and Resham Chhabria Jeetendra will offload part of their stakes.
The proceeds from its fresh issuance will be utilized for prepayment or scheduled repayment of a portion of certain outstanding borrowings and balance for general corporate purposes.
Allied Blenders and Distillers IPO GMP
In the grey market, the company's shares are trading with a premium of 27% unchanged from the previous day.
Also Read: A bet on Allied Blenders may take longer to give a high
Allied Blenders and Distillers IPO review
While Allied Blenders and Distillers boasts a strong brand presence, a diverse product portfolio, and an extensive pan India distribution network, analysts are cautious about investing in the IPO.
«The company's financial performance has been volatile, characterized by low-profit margins and high debt levels. Additionally, the Indian Made Foreign Liquor (IMFL) industry faces intensifying competition, potential tax
