Adani Wilmar recovers 15 per cent after weak listing

The share sale, which opened for subscription between January 27 and 31, was subscribed 17.37 times. Adani Wilmar picked up 3,600 crore in IPO.

On 6 February, Mint reported that Adani Wilmar’s shares were available at a premium. 28, in the gray market, after hitting the highest 35 before. “The sluggish listing of Adani Wilmar can be attributed to weak market sentiments; Otherwise, the fundamentals and valuations were good for this IPO,” said Santosh Meena, head of research, Swastika Investmart Ltd.

Likhita Chepa, Senior Research Analyst, Capitalvia Global Research, said long-term investors and investors looking to buy the stock on the day of listing may consider holding or buying the stock given its wide distribution, healthy financials, strong brand recall, growing reach. can do. domestic consumption. Adani Wilmar, a joint venture between Adani Enterprises Limited and Wilmar International Limited, owns the Fortune brand of edible oils. It has the largest range of edible oils including soybean, sunflower, mustard and rice bran. Its Fortune brand of oil has a market share of about 20% in India.

Adani Wilmar is the seventh listed company of the Adani Group. Other listed entities include Adani Enterprises, Adani Ports and Special Economic Zone Limited, and Adani Transmission Limited. Adani Wilmar’s listing comes at a time when the group’s billionaire founder Gautam Adani overtook Reliance Industries’ Mukesh Ambani to become the richest Indian. Bloomberg Billionaire Index.

The 59-year-old mogul’s net worth reached $88.5 billion on Monday, eclipses Ambani’s $87.9 billion, according to the Bloomberg Billionaires Index. With a jump of nearly $12 billion in his personal wealth, Adani is the world’s biggest asset this year.

Some of the listed shares of the Adani Group have risen over 600% in the past two years, which will be at stake on their push in green energy and infrastructure as Modi seeks to revive the $2.9 trillion economy and help India by 2070. Looking to meet the carbon net-zero target. MSCI Inc’s decision to include more Adani companies in its Indian benchmark index also means that any fund tracking the gauge will have to buy shares.

Bloomberg contributed copy.