Monika Alcobev IPO booked 1.51 times on day 2, but retail portion undersubscribed

Monika Alcobev IPO

Mumbai-based liquor importer Monika Alcobev has received decent response for its initial public offering (IPO) from investors on the second day of bidding — July 17. The issue was subscribed 1.51 times with investors buying 63.20 lakh shares compared to the offer size of 41.8 lakh shares, via 2,191 applications.

The company is raising Rs 165.63 crore via initial share sale which is a combination of fresh issue of 47.91 lakh shares and an offer-for-sale of 10 lakh shares by existing shareholders - Deven Mahendrakumar Shah, and Rhetan Estate.

The price band for the offer, which closes on July 18, is Rs 271-286 per share.

Non-institutional investors led the charge in terms of subscription, bidding 2.95 times their allotted quota. The part set aside for qualified institutional investors was also fully subscribed at 1.09, but the reserved portion of retail investors remained subscribed at 82 percent.

Monika Alcobev IPO shares did not get any premium in the grey market, the market observers told Moneycontrol. The grey market is an unofficial market for trading in IPO shares till the listing.

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The luxury spirits, wines, and liqueurs importer and distributor holds exclusive selling rights for more than 70 global brands of renowned names like Jose Cuervo, Bushmills, Rémy Martin, Cointreau, Choya and Belenkaya, for India and Indian subcontinent countries.

Of the net fresh issue funds, Rs 100.6 crore will be used for working capital requirements, and Rs 11.45 crore for repaying its debt. The remaining capital will be utilised for general corporate purposes.

Marwadi Chandarana Intermediaries Brokers is acting as the sole merchant banker for the Monika Alcobev IPO.