Adani Group’s FMCG arm Adani Wilmar is all set to enter Dalal Street with its IPO (Initial Public Offering), which opens on January 27. The company which makes edible oil ‘Fortune’ is looking to raise Rs 3,600 crore through the issue after having trimmed the size of IPO from Rs 4,500 crore. Shares of the company are being offered in a fixed price band of Rs 218-230 per share. The IPO comprises a fresh issue of equity shares and there will not be any offer for sale. Adani Wilmar’s IPO will be the second issue of 2022 with AGS Transact Technologies, which ends today, being the first.
Adani Wilmar’s IPO will have 50% of the portion reserved for Qualified Institutional Buyers (QIB) while the 35% is available for retail investors to bid for and only 15% is for Non-Institutional Investors (NII). Investors can bid for a minimum of 65 equity shares and in multiples thereof, translating to a minimum investment of Rs 14,950 per investor. Ahead of the IPO, Adani Wilmar’s shares were already witnessing some activity in the unlisted space, trading at a premium of Rs 60-70 per share. The IPO will close on January 31.
The FMCG unit is a 50:50 joint venture company between Ahmedabad-based Adani Group and Singapore’s Wilmar group. The IPO proceeds will be used for capital expenditure, repayment of debt and funding strategic acquisitions and investments, the offer document said.
Adani Wilmar is among the leading FMCG companies in India. The company operates in the Packaged Food Industry, Packaged Edible Oil Industry, Personal Care Industry, Castor Oil and Derivatives Industry, and Oleochemical Industry. With revenue of Rs 37,195 crore in the last financial year, the firm reported a net profit of Rs 727 crore, an increase from Rs 460 crore Adani Wilmar reported in the financial year ending March 2020.
Upon listing, Adani Wilmar will join six other companies owned by Gautam Adani already trading on the stock exchanges. These include Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone. ICICI Securities, HDFC Bank, BNP Paribas, Kotak Mahindra Capital, JP Morgan, BofA Securities and Credit Suisse are the book running lead managers to the public issue.