Allied Blenders and Distillers: Should you buy, sell or hold after listing?

The makers of Officer's Choice whisky raised Rs 499.1 crore through their anchor book

Allied Blenders and Distillers shares made a decent start, listing at a premium of 13.87 percent, albeit comfortably lower than the grey market premium where shares were trading almost 20 percent higher.

The Rs 1,500-crore public offer witnessed a robust subscription interest over the three days and investors across categories subscribed to the issue. But are you confused about what you should do with the stock after losing? Let's see what experts make of it.

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The stock price has further declined since the listing, adding to the cautious investor sentiment. "This is 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," says Shivani Nyati, head of wealth at Swastika Investmart, advising investors to hold their position and keep a stop loss at the issue price of  Rs 281.

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On the other hand, Narendra Solanki of Anand Rathi suggests that the company has promising long-term business prospects even as the issue seems fully priced in the near term. "Long-term investors could continue to remain invested as its the largest Indian-owned Indian-made foreign liquor (IMFL) company and the third largest IMFL company in India.

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The makers of Officer's Choice whisky raised Rs 499.1 crore through their anchor book, with investments from Societe Generale, Goldman Sachs, Troo Capital, BNP Paribas, 360 One Special Opportunities Fund, LIC Mutual Fund, and Jupiter India. The Maharashtra-based liquor manufacturer plans to use the net proceeds primarily to repay debts and for general corporate purposes.

"While internal practices and the promising macro situation are likely to help the company experience growth in the coming periods, the issue seems to be expensive on the valuation front, we would advise the market participants to book profit on the listing day," Parth Shah, research analyst at StoxBox said.

Amit Goel, co-founder and global strategist at Pace 360 advises caution to stock holders. "Post listing, investors should book profits and we advise investors to stay away from long term investment in this stock. However, in the shorter term, it might remain range bound," he added.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.