Adani Wilmar, which sells cooking oils and certain other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar.
Adani Wilmar IPO Latest News: Edible oil major Adani Wilmar will raise Rs 3,600 crore through its initial public offering (IPO) in the capital markets today.
The proceeds of the public issue will be used to fund capital expenditure, reduce debt and take over acquisitions as the company seeks to become India’s largest food and FMCG company.
The public issue, consisting of fresh equity shares, will open for subscription on January 27 and close on January 31. The price band is Rs 218-230 per share.
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Adani Wilmar, which sells cooking oils and certain other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar.
Adani Wilmar Limited on Tuesday raised Rs 940 crore from anchor investors. The company has decided to allot about 4.09 crore equity shares to anchor investors at Rs 230 per share.
Investors can bid in a minimum of 65 equity shares and multiples thereof. Half of the issue size is reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
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After the IPO, the public stake will be 12 per cent and the remaining 88 per cent will be held equally by the two promoters.
According to the Red Herring Prospectus (RHP), the company proposes to use Rs 1,900 crore for capital expenditure, Rs 1,058.9 crore for repayment/prepayment of its borrowings and Rs 450 crore for strategic acquisition and investment funding. Is.
On the financial front, Adani Wilmar Ltd’s revenue rose 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.
Profit increased to Rs 357.13 crore from Rs 288.78 crore in the same period. The company posted a revenue of Rs 37,195.65 crore and a profit of Rs 728 crore for the entire 2020-21 financial year.
Apart from cooking oil, Adani Wilmar sells food products such as rice, wheat flour and sugar. It also sells non-food products such as soaps, handwashes and sanitizers.
In the draft red herring prospectus, the company had proposed to raise up to Rs 4,500 crore, but later cut the size of the IPO.
Addressing a virtual press conference on January 21, Adani Wilmar CEO and Managing Director Angshu Malik had said that the company would focus on increasing its market share in the edible oil segment and growing the food business.
“We are one of the fastest growing food and FMCG companies,” he had said and expressed confidence of becoming one of the largest in the sector in the years to come.
Due to the reduction in the size of the IPO, Adani Wilmar’s Chief Financial Officer (CFO) Shrikant Kanhere had said that this was done to make the public issue more optimistic and efficient in terms of capital structure.
At present, six companies of the Adani Group are listed on the domestic stock exchanges.
In addition to Adani Enterprises, others listed are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zones.
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