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Adani Wilmar shares end with 15% gains after weak debut

Adani Wilmar raised Rs 3,600 crore through its public issue, which was subscribed more than 17 times.

Adani Wilmar

Edible oil major Adani Wilmar’s shares rebounded after a subdued listing and closed higher by 15.3% at Rs 265.20 on BSE. The stock listed at Rs 221 on BSE, a discount of 4% against the issue price of Rs 230 apiece. On NSE, the stock listed at a discount of 1% at Rs 227. The overall weakness across equity markets impacted the listing of Adani Wilmar. Since November 2021, 21 companies have hit the bourses, out of which, seven companies listed at a discount, while others inched higher on the listing, shows data compiled by Primedatabase.com.

At close, the market capitalisation of the company stood at Rs 34,467.47 crore. Adani Wilmar’s price/earnings ratio is 42.11 times its last twelve months earnings against a five-year historical average of 39.5x for Marico and Dabur India’s 40.3x, Bloomberg data showed. HUL — the largest FMCG company, with a market capitalisation of Rs 5.32 lakh crore had a five-year average PE of 56.2x.

Adani Wilmar raised Rs 3,600 crore through its public issue, which was subscribed more than 17 times. Pranav Adani, director, Adani Wilmar, during the listing ceremony on Tuesday, said: “The fact that the company’s Rs 3,600 crore IPO garnered bids close to worth Rs 50,000 crore is the confidence that the investors have in the group’s ability to deliver shareholders value.”

The joint venture between Adani Enterprises and Wilmar International offers most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. It intends to utilise the proceeds for repayment of debt, to fund the capex of existing manufacturing facilities, and develop new manufacturing facilities. Post the issue, the company is expected to become debt-free, the management had said.

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