Adani Wilmar shares jump 10% as Adani Enterprises to demerge food-FMCG biz

Adani Wilmar shares closed 10 per cent higher on Friday at its upper circuit in Friday’s trade at Rs 383.15 per share on NSE, a day after its flagship firm Adani Enterprises approved the demerger of the company’s food FMCG business to Adani Wilmar.

The boards of directors of Adani Enterprises Limited (AEL), the flagship company of Adani Group, and Adani Wilmar Limited (AWL), a food company, on Thursday approved the scheme of arrangement under which AEL will transfer its 43.94 per cent stake held in Adani Wilmar to its own shareholders.

With this, the existing shareholders of AEL will hold shares directly in Adani Wilmar. Post-demerger, AEL shareholders will receive 251 shares of AWL for every 500 shares of AEL, or in that ratio.

In a notice to the stock exchange on Thursday, AEL said it continues to incubate new businesses and create sustainable and long-term value for its stakeholders.

“This demerger is in line with AEL’s incubation strategy, which includes demerging of the business once it is self-sustained and properly established. In the past, AEL has demerged businesses, including Adani Green Energy, Adani Energy Solutions (Adani Transmission earlier), etc., once they became self-sustaining,” a group source had said.

No cash consideration is payable under the proposed scheme.

The company also said that the segregation will increase focus of the management in the food FMCG business and other businesses, facilitating the management to efficiently exploit opportunities for each of the said businesses. It will also provide scope for independent collaboration and expansion.