Ravi Kumar Distilleries surges on debut

Settles at Rs 80.05 on BSE

Shares of Ravi Kumar Distilleries settled at Rs 80.05 on BSE, a 25.07% premium over the initial public offer price of Rs 64. The stock debuted at Rs 64, at par to the initial public offer (IPO) price. The scrip hit a high of Rs 90.30 and low of Rs 64. The counter clocked volume of 4.43 crore shares.



The IPO of Indian-made foreign liquor maker Ravi Kumar Distilleries closed on 10 December 2010 with 2.22 times subscription. The IPO garnered bids for 2.55 crore shares compared with 1.15 crore shares on offer.

The company had priced the IPO at the top end of the Rs 56-64 a share price band. The issue received poor response from the qualified institutional buyers (QIBs) category, which was subscribed just 15%. However, the issue received a good response from non-institutional and retail investors. The non- institutional investors category, made up of corporates and high net worth investors, was subscribed 7.31 times. The retail investors category was subscribed 3.01 times.

The company plans to use the proceeds of the IPO for capacity expansion, installation of a re-distillation plant and to part-finance its marketing and corporate branding expenses.

Ravi Kumar Distilleries is engaged in the business of manufacturing Indian Made Foreign Liquor under its own brand portfolio as well as under tie-up arrangements with other companies.