Adani Wilmar IPO: Latest GMP, Subscription Status Last Day of Issuance

BSE data showed that till the second day, the retail individual investors (RIIs) category was subscribed 1.85 times, while non-institutional investors were subscribed 88% and qualified institutional buyers (QIBs) 39%.

public issue up to 3,600 crore includes fresh issue of equity shares and there will be no secondary offer. The company plans to use its proceeds from the issue to fund capital expenditures, debt repayment and strategic acquisitions and investments.

As per market observers, the shares of Adani Wilmar are available at a premium (GMP): Today in Gray Market 25. The shares of the company are expected to be listed on the stock exchanges BSE and NSE on February 8, 2022.

“Adani Wilmar has strong brand recall, wide distribution, superior financial track record and healthy ROE. Taking into account all the positive factors, we believe this assessment is at an appropriate level. As such, we recommend a subscription rating on this issue,” Angel One said in a note.

Adani Wilmar, a 50:50 joint venture company between the Gautam Adani-led conglomerate Adani Group and Singapore’s Wilmar Group, sells cooking oils under the Fortune brand. Apart from cooking oil, it sells food products such as rice, wheat flour and sugar. It also sells non-food products such as soaps, handwashes and sanitizers.

“On the High Price Band” 230, AWL is seeking a P/E multiplier of 37.5x, which is at a discount to the peer average of 57.6x. Its edible oils business is likely to have a secular growth trend, but there is a large untapped market for its food and FMCG business segment. Thus considering the above comments, we assign a ‘Subscribe’ rating to the issue,” said analysts at Choice Broking.