Allied Blenders and Distillers’ IPO gains 13 per cent on listing
Shares of Allied Blenders and Distillers made a decent listing on Tuesday by gaining a little over 13 per cent. As against the IPO price of ₹281, the stock listed at ₹318.10 on the BSE and hit a high of ₹324.40 and a low of ₹306.70, before settling at ₹317.85, up 13.11 per cent over the IPO price. On the NSE, the stock closed at ₹317.90.
Earlier, the initial public offering (IPO) of Allied Blenders, the maker of Officer’s Choice Whisky, was subscribed 23.55 times. The IPO comprised a fresh issue of ₹1,000 crore and an oer for sale of up to ₹500 crore by the promoters.
The IPO received bids for 92.49 crore shares against about 3.94 crore shares on oer.
According to Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, the listing price fell short of prelisting
Kishor Chhabria, Chairman of Allied Blenders and Distillers, and Ashish Kumar Chauhan, NSE CEO, during the listing ceremony
expectations, possibly due to the high IPO valuation or concerns about the company’s financial health and competitive industry landscape. “Allied Blenders’ history of volatile financial performance with low margins and high debt levels remains a cause for concern,” she said.
The portion for qualified institutional buyers (QIB) received bids 50.37 times, while the category for non-institutional investors was subscribed 32.40 times and retail
investors by 4.51 times. The employees and quota saw the portion subscribed 9.89 times. The Maharashtrabased company had reserved shares worth ₹3 crore for its employees, who will enjoy a discount of ₹26 a share to the final IPO price.
Allied Blenders—an Indian-owned, Indian-made foreign liquor company with a product range that includes five main categories—had garnered ₹449.1 crore from anchor investors.
IDBI Capital NEOGEN CHEMICALS (BUY)
Target: ₹2,871
CMP: ₹1,582.15
Neogen Chemicals might seem to be optically trading at very high valuations, however one needs to seriously consider the long runway the stock has to capture in the EV segment. We are of the firm view that Neogen Chemicals will be able to capture a sizeable market share 30 per cent of the EV electrolytes market since it will have a robust first mover advantage strengthened by its technological tie up with Mitsubishi Ionic Solutions (MUIS). Once the company starts receiving committed volumes for battery chemicals from domestic battery manufacturers such as Ola Electric, Rajesh Exports, Exide, Amara Raja and others we expect the stock price to witness healthy price appreciation.
Working capital intensity will also moderate with rising contribution from battery chemicals business. We assume equity raising of ₹175 crore in FY26 to balance the capital structure and to fund the battery chemicals business. We are of the firm view that Neogen is a compelling medium term structural growth story from an investment standpoint. We believe the company can clock in revenue CAGR of 17 per cent from FY24-FY28 in its base business along with strong growth emanating from battery chemicals business. We introduce FY27 and FY28 estimates factoring in growth from the battery chemicals business and upgrade our rating to Buy (from Hold) with a 2-year TP of ₹2,871.
ICICI Securities
Gurumurthy K
The outlook for Jyothy Labs is bullish. The strong 5.75 per cent surge on Tuesday has taken the share price well above the ₹460-470 resistance cluster. The region between ₹465-460 will now act as a good support zone now. Any intermediate dips are likely to be limited to this support zone. Moving average cross overs on the daily chart strengthens the bullish case. That indicates that the downside could be limited. Jyothy Labs share price can rise to ₹500 in a week or two. Traders can go long now at ₹477.
Accumulate on dips at ₹467.
Keep the stop-loss at ₹457 initially. Trail the stop-loss up to ₹482 as soon as the stock goes up to ₹488. Move the stop-loss further up to ₹491 when the price touches ₹495. Exit the long positions at ₹500.
Note: The recommendations are based on technical analysis. There is risk of loss in trading