Adani Wilmar’s shares listed on Tuesday and made their stock market debut 227 each on NSE, a discount of over 1% over its IPO issue price 230, although later increased to . Done 250. Adani Group Shares Close Over 20% 265 per share on its first day on BSE.
“The weak listing of Adani Wilmar can be attributed to weak market sentiments otherwise fundamental and valuations for this IPO were good. Those who applied for listing gain can maintain a stop loss of 200 while long term investors should hold it. New investors can see buying opportunities even on initial weakness,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The company had opened its three-day Initial Public Offering (IPO) The issue closed on January 31 on January 27. The issue was subscribed more than 17 times. The edible oil major on Friday finalized its issue price Initial share sale of Rs 3,600 crore 230 per share.
The initial share sale of Ahmedabad-based Adani Wilmar, a joint venture between the Adani Group and Singapore-based Wilmar Group, involved only a fresh issue of equity shares.
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.
According to the Red Herring Prospectus (RHP), the company proposes to use 1900 crore for capital expenditure, 1,058.9 crore for repayment/prepayment of its borrowings and 450 crore to finance strategic acquisitions and investments.
Established in 1999, Adani Wilmar is an FMCG food company offering most of the essential kitchen items including edible oil, flour, rice, pulses and sugar. The company sells cooking oil 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. Adani Wilmar is the seventh company of the Adani Group to be listed on the Indian stock exchanges.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,