Adani Wilmar IPO: Issue Price, Other Key Things To Know

Edited by Prashun Talukdar

07 Feb 2022, 12:36 PM IST

Currently, six Adani Group companies are listed on the domestic bourses.

New Delhi: Edible oil major Adani Wilmar has finalised the issue price of its Rs 3,600 crore initial public offering (IPO) at Rs 230 per share. The price band of the IPO was Rs 218-230 per share. The shares are likely to get listed on February 8.

The IPO was open between January 27 and January 31 and it got subscribed over 17 times. The portion for retail investors was subscribed 3.92 times.

Here are the key things to know about the IPO:

* Adani Wilmar, which sells its cooking oils and other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar.

* Post-IPO, the public shareholding will be 12 per cent and the remaining 88 per cent will be equally held by the two promoters.

* Analyst view: "Adani Wilmar is expected to give listing gains around 15 to 20 per cent. Since the issue witnessed moderate response due to ongoing negative sentiments and volatility in the secondary market, we expect it to list in the range of Rs 260 - Rs 265. Long term investors and investors looking to buy the stock on a listing day can consider holding/buying this stock, given its wide distribution, healthy financials, strong brand recall, increasing reach and household consumption, its prospects appear to be optimistic over the long term. Short investors can hold the stock and book profits at 30 to 40 per cent i.e they can book profits at Rs 290 – Rs 300," said Likhita Chepa, Senior Research Analyst at CapitalVia Global Research.

* As per the Red Herring Prospectus (RHP), the company proposes to utilise Rs 1,900 crore for capital expenditure, Rs 1,058.9 crore for repayment/prepayment of its borrowings and Rs 450 crore for funding of strategic acquisitions and investments.

* On the financial front, Adani Wilmar Ltd's revenue increased to Rs 24,957.28 crore for the six months ended September in the current fiscal, as against Rs 16,273.73 crore in the corresponding period of the previous year.

* Apart from cooking oils, Adani Wilmar sells food products like rice, wheat flour and sugar. It also sells non-food products like soap, handwash and sanitisers.

* Currently, six Adani Group companies are listed on the domestic bourses. Apart from Adani Enterprises, other listed ones are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone.