 "Adani Wilmar stks fall below OFS floor price; at lowest level since Feb'22")
Shares of Fortune oil maker Adani Wilmar (AWL) hit an over two-year low of Rs 267.45, declining 8 per cent on the BSE in Monday’s intra-day trade, and extending its Friday’s fall after the company’s promoter, Adani Commodities, began its partial stake sale via an offer for sale (OFS) on January 10, 2025. In two days, the stock of the edible oil company has tanked 17 per cent. It fell below its floor price of Rs 275 fixed for the OFS.
AWL is trading at its lowest level since February 2022. The stock had hit a record low of Rs 221 on listing day, i.e., on February 8, 2022. It had hit a record high of Rs 878.35 on April 28, 2022. The company had raised Rs 3,600 crore by issuing shares at a price of Rs 230 per share in its initial public offering (IPO).
At 10:15 am, AWL share price was quoting 6.5 per cent lower at Rs 272.55, as compared to the 0.53 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped over 1.5 times, with a combined nearly 10 million equity shares changing hands on the NSE and BSE.
Adani Group on Friday raised Rs 4,850 crore from the sale of a 13.5 per cent stake in AWL as part of its strategy to exit non-core activities to focus on its main infrastructure businesses.
The conglomerate, which last month announced its intention to exit from Adani Wilmar by selling the bulk of its stake to a joint venture partner, had on Thursday announced the sale of 175.4 million shares (13.50 per cent equity) in the company on January 10 (to non-retail investors), and on January 13 (to retail investors) at a floor or minimum price of Rs 275 apiece. The OFS included an option to additionally sell up to 8.44 crore shares, or 6.50 per cent equity, PTI reported.
Adani Commodities LLP, a subsidiary of Adani Enterprises Ltd, completed the OFS for 13.5 per cent stake sale in Adani Wilmar to non-retail investors on Friday, according to information available from stock exchange filings.
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The company intimated the stock exchanges of its intention to exercise the Oversubscription Option in the Offer to the extent of 19.63 million equity shares, representing 1.51 per cent of the total issued and paid-up equity share capital of the company, in addition to the 175.4 million equity shares, representing 13.50 per cent of the total issued and paid-up equity share capital of the company.
Accordingly, the aggregate number of shares on offer will be up to 19.50 crore (15.01 per cent), of which, up to 1.95 crore (1.50 per cent) would be available as part of the offer on January 13, the company said in an exchange filing.
On December 30, 2024, Adani Enterprises (AEL), Adani Commodities LLP, a wholly-owned subsidiary of AEL and Lence Pte Ltd (Lence), a wholly-owned subsidiary of Wilmar International Limited, entered into an agreement pursuant to which, Lence will acquire all the paid-up equity shares of AWL held by ACL as at the date of exercise of the call option or put option, as the case maybe, in respect of a maximum of 31.06 per cent of the existing paid up equity share capital of AWL.
In addition, it has been agreed between the parties that AEL will divest approximately 13 per cent shares in AWL to achieve compliance with minimum public shareholding requirements. It may be noted that with the completion of these two legs, AEL would completely exit its approximately 44 per cent shareholding in AWL.
AEL will use the proceeds from the sale to turbocharge its investments in the core infrastructure platforms in the energy & utility, transport & logistics and other adjacencies in primary industries. AEL will continue to invest in infrastructure sectors, which will further strengthen AEL’s position as India’s largest listed incubator of platforms playing the key macro themes underpinning India’s growth story, AEL said in an exchange filing.
AWL is well positioned to benefit from the huge scale of operations, coupled with a strong distribution network and retail reach across the length and breadth of India. Adani Wilmar has 100 per cent urban coverage and presence in over 30,600 rural towns in India and exports to over 30 countries globally, the company said.
Meanwhile, shares of AEL were trading 2 per cent lower at Rs 2,314 on the BSE. In three days, the stock price of AEL has declined 8 per cent. It has corrected 38 per cent from its 52-week high level of Rs 3,743, touched on June 3, 2024.