Adani Wilmar, a joint venture between the Adani Group and Singapore-based Wilmar group, will launch its initial public offering (IPO) on January 27 to raise Rs 3,600 crore at the upper end of the price band. The edible oil major’s shares will be offered at a price band of Rs 218-230, and the offer will close on January 31. Bids can be placed for a minimum of 65 equity shares and in multiples of 65 equity shares thereafter.
The company has trimmed its issue size to Rs 3,600 crore from Rs 4,500 crore, slashing Rs 900 crore tagged under general corporate purposes in the draft red herring prospectus (DRHP) filed in August 2021. “The issue size was reduced to make it more optimistic and efficient. We have cut off Rs 900 crore, which was earlier reserved for general corporate purposes,” the company’s management said in a media conference on Friday. Companies, if they wish to, can increase/decrease their offer size after filing the DRHP and at the time of filing the RHP with the Securities and Exchange Board of India (Sebi).
Anchor investors will begin bidding on January 25. The entire offer comprises fresh issue of equity shares and existing shareholders and promoters will not offload their stake in the offer. Proceeds from the offer will be utilised for repayment of the debt, capital expenditure, and for financing strategic acquisitions and investments. Further, the company has reserved shares worth Rs 107 crore for eligible employees with a discount of Rs 21.
Adani Wilmar, on listing, will become the seventh company of the Adani Group to list on the bourses after Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports. The company will face competition from its already listed peers like Hindustan Unilever, Marico, and others.
The Adani Group’s consumer products company, which sells oils, rice, wheat flour and other products under the brand name ‘Fortune’, clocked revenues of Rs 37,195 crore in FY21, whereas net profit during the period stood at Rs 727 crore. The company said its food business is growing between 20 and 25%, while the edible oil business is growing at 6-7%. However, currently, rising inflation will impact its topline business in the coming months. “The rise in inflation will have an impact on the topline business and will impact the revenues of the company. However, we don’t look at our growth only from the revenue perspective,” the management said on Friday.