Adani Wilmar’s much awaited IPO is finally going to open on Thursday, January 27 that will conclude on January 31. The company has fixed a price band of Rs 218-230 a share for its Rs 3,600-crore initial share sale valuing the company at Rs26,287.82 crore. The bidding for anchor investors will start on January 25. The public issue comprises fresh issue of equity shares.
The company has cut its IPO size to Rs3,600 crore from Rs4,500 crore as planned earlier. The shares are expected to list on stock exchanges BSE and NSE on February 8, 2022. The proceeds from the issue worth Rs 1,900 crore will be used for capital expenditure, Rs 1,058.90 crore for repayment of debt and Rs 450 crore will be used for funding strategic acquisition and investment.
Offer Opens: January 27, 2022
Offer Closes: January 31, 2022
Issue Type: Book Built Issue
Face value: Rs 1 each
Price Band: Rs 218–230 per equity share
Bid: Minimum of 65 equity shares and in multiples
Listing: February 8, 2022
Adani Wilmar is a 50:50 joint venture company between Gautam Adani-led congolomerate Adani group and Singapore’s Wilmar group. It is into selling cooking oils under the Fortune brand. Adani Wilmar has the largest range of edible oils comprising soya bean, sunflower, mustard, and rice bran. Its Fortune brand of oil has around 20% market share in India. The firm has also leveraged its brands and distribution network to offer a wide array of packaged foods including packaged wheat flour, rice, pulses, besan and sugar. The company has 22 plants across 10 states, comprising 10 crushing units and 19 refineries. Out of the 19 refineries, 10 are port-based to facilitate the use of imported crude edible oil and reduce transportation costs. The company’s distributors are in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets. As of September 30, 2021, the company had 88 depots, with an aggregate storage space of approx. 1.8 million square feet across the country.
Currently, Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports are listed on the bourses. Adani Wilmar will be the seventh Adani group company to list on the Indian stock exchanges. For the period ended September 2021, the company reported a consolidated total income of Rs 24,957 crore as against Rs 16,273 crore a year ago. Net profit for the period stood at Rs 357 crore versus Rs 288 crore last year. As of September 2021, the aggregate outstanding borrowings of the firm (on consolidated level) was at Rs 9,191 crore.
The company has diversified product portfolio with leading brands catering to most daily essentials of an Indian kitchen with strong brand recall and broad customer reach. It is also one of the largest basic oleochemical manufacturers of India and has an integrated business model with well-established operational infrastructure and strong manufacturing capabilities.