Adani Wilmar extends rally; stock surges 30% over issue price

Shares of Adani Wilmar hit a new high of Rs 299.65, surging nearly 13% in Wednesday's intra-day trade

Shares of Adani Wilmar hit a new high of Rs 299.65 after they rallied nearly 13 per cent on the BSE in Wednesday's intra-day trade.

With today's rally, the stock of Adani Group edible oil major has surged 30 per cent over its issue price of Rs 230 per share, and is above 36 per cent from its listing price of Rs 221 on the BSE. On the NSE, it had listed with a minor loss of 1 per cent at Rs 227.

Adani Wilmar is the seventh listed company of Adani Group. The company is a joint venture between the Adani group and Wilmar group, and is India's leading manufacturer of edible oil under the Fortune brand. Besides oil, the company offers products like wheat flour, rice, pulses, sugar and packaged food.

The proceeds of the public issue will be used to fund capital expenditure, reduce debt and for acquisitions as the company seeks to become India's biggest food and FMCG company.

The company is one of the few major FMCG players to enjoy pan-India coverage with its huge distribution network comprising 5,566 distributors across 28 states and eight union territories throughout India catering to over 1.6 million retail outlets.

"Adani Wilmar benefits from its parentage, leveraging the in-depth understanding of local markets, extensive experience in domestic trading and advanced logistics network. The company has successfully managed to develop its “Fortune” brand in the edible oil category with leadership position in the last 20 years," ICICI Securities had said in a note.

Separately, Adani Wilmar has informed that the board of directors of the Company is scheduled to meet on February 14, 2022 to consider and approve unaudited financial results for the quarter and nine months ended on December 31, 2021.