Allied Blenders & Distillers (ABD), a prominent company with an 8.2 percent market share and a robust national distribution network, is preparing to launch a significant Initial Public Offering (IPO) valued at Rs. 1500 crore. This strategic move is primarily focused on repaying the company’s outstanding borrowings, reflecting a commitment to strengthen its financial health.
The IPO will include a combination of fresh shares and an Offer for Sale (OFS), indicating a well-planned approach to attract investment. By offering a mix of fresh equity and OFS, ABD aims to balance raising new capital while also providing liquidity to existing shareholders. This structure is designed to appeal to a wide range of investors, ensuring a successful IPO.
Notably, 35 percent of the shares from this offering will be reserved specifically for retail investors. This significant allocation underscores ABD’s intent to make its shares accessible to individual investors, providing them with an attractive opportunity to invest in a well-established entity. The substantial reservation for retail investors highlights the company’s inclusive approach to its public offering.
ABD’s plan received the final nod from the Securities and Exchange Board of India (SEBI), following the resubmission of its IPO documents on January 15, 2024. This regulatory approval marks a crucial step forward in ABD’s journey towards enhancing its market position and financial stability. The positive response from SEBI reflects confidence in ABD’s business model and future prospects, paving the way for a successful IPO launch.