Retail portion of Adani Wilmar IPO fully subscribed on Day 1

Adani Wilmar commands a price-to-earnings multiple (P/E) of 36.11x, which is comparatively lower than its FMCG peers Hindustan Unilever (P/E – 67.48x) and Marico (P/E – 50.91x).

Earlier this week, the company had garnered Rs 940 crore from 15 anchor investors, allocating around 4.09 crore equity shares at Rs 230 per share. At the upper price band of the offer, the company is seeking a market value of Rs 29,887 crore. Post listing, the promoters will hold an 88% stake in the company while 12% will be held by the public.
Earlier this week, the company had garnered Rs 940 crore from 15 anchor investors, allocating around 4.09 crore equity shares at Rs 230 per share. At the upper price band of the offer, the company is seeking a market value of Rs 29,887 crore. Post listing, the promoters will hold an 88% stake in the company while 12% will be held by the public.

The Rs 3,600-crore initial public offering (IPO) of Adani Wilmar was subscribed 61% on the first day of bidding. The retail portion was fully subscribed during the day, while the portion reserved for qualified institutional buyers and non-institutional investors was subscribed 57% and 31%, respectively. The three-day share sale will conclude on January 31.

Earlier this week, the company had garnered Rs 940 crore from 15 anchor investors, allocating around 4.09 crore equity shares at Rs 230 per share. At the upper price band of the offer, the company is seeking a market value of Rs 29,887 crore. Post listing, the promoters will hold an 88% stake in the company while 12% will be held by the public.

Adani Wilmar revenues have grown at a CAGR of 11.28% over FY15 to FY20, and the EBIDTA has grown at a CAGR of 20.65% during the same period. Adani Wilmar commands a price-to-earnings multiple (P/E) of 36.11x, which is comparatively lower than its FMCG peers Hindustan Unilever (P/E – 67.48x) and Marico (P/E – 50.91x).

“We believe AWL’s focus on growth of FMCG and packaged food business and a shift to value-added products will result in increasing market share and expansion of margins. The company has planned capex of Rs 1,900 crore to create in-house capacity for food FMCG, new product launches, exports opportunities, and further it has kept aside Rs 450 crore for inorganic opportunities. These initiatives will help company scale faster. Further, the company plans to pay off its long-term debt from IPO proceeds,” said brokerage firm KR Choksey with a ‘Subscribe’ rating to the IPO.

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