Adani Wilmar FY21 profit jumps 58% to Rs 728 cr; income up 25%

Adani Wilmar, which markets its cooking oils and other items under Fortune brand, filed a draft red herring prospectus with Sebi to launch its IPO to raise up to Rs 4,500 crore.

Edible oil major Adani Wilmar, which proposes to launch its IPO, has posted a 58 per cent increase in its consolidated net profit to Rs 727.64 crore during the last fiscal year.

On Monday, Ahmedabad-based Adani Wilmar, which markets its cooking oils and other food items under Fortune brand, filed a draft red herring prospectus (DRHP) with market regulator SEBI to launch its Initial Public Offer (IPO) to raise up to Rs 4,500 crore.

According to the DRHP, Adani Wilmar posted a consolidated net profit of Rs 727.64 crore in the financial year 2020-21 and Rs 460.87 crore in the previous year.

Total income rose by 25 per cent to Rs 37,195.65 crore during the 2020-21 financial year from Rs 29,766.98 crore in the previous year.

Adani Wilmar is an equal joint venture between Adani Group and Singapore-based Wilmar. The JV was formed in 1999.

In a regulatory filing, Adani Enterprises Ltd on Monday informed that Adani Wilmar Ltd (AWL) has filed the DRHP with SEBI for its IPO.

"The proposed listing of AWL on the stock exchanges will comprise an IPO in the form of fresh issue of new equity shares by AWL for an amount of up to Rs 45,000 million (approximately USD 600 million)," Adani Enterprises had said.

"There will not be any secondary offering," said Adani Enterprises, the flagship firm of Adani group.

Adani Wilmar proposes to use the net proceeds to expand its existing manufacturing plants, set up new facilities, repayment/prepayment of borrowings, fund strategic acquisitions, and investments, and general corporate purposes.

As per the DRHP, AWL would utilise Rs 1,900 crore towards capital expenditure, Rs 1170 crore for repayment/prepayment of borrowings, and Rs 500 crore for funding strategic acquisitions and investments.

"The proposed listing is intended to further the growth of AWL's operations by increasing its market visibility and awareness among current and potential customers," the filing said.

In November last year, Gujarat-based Adani Wilmar completed 20 years of operations of its flagship ''Fortune'' brand.

Apart from cooking oils, Adani Wilmar sells food products like rice, wheat flour, and sugar.

It also sells non-food products like soap, handwash, and sanitisers.

Currently, six Adani group companies are listed on domestic bourses.

Apart from Adani Enterprises, other listed ones are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone.