You are here: Home » Companies » News
Business Standard

Adani Wilmar IPO opens on Thursday to raise up to Rs 3,600 crore

Edible oil major Adani Wilmar will on Thursday hit the capital market to raise up to Rs 3,600 crore through its Initial Public Offer (IPO).

Topics
Adani Wilmar | Companies | IPOs

Press Trust of India  |  New Delhi 

Adani group, adani enterprises

Edible oil major will on Thursday hit the capital market to raise up to Rs 3,600 crore through its Initial Public Offer (IPO).

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 public issue, comprising fresh equity shares, will open for subscription on January 27 and close on January 31. Price band is Rs 218-230 per share.

Adani Wilmar, which sells cooking oils and some other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani group and Singapore-based Wilmar.

On Tuesday, Ltd had raised Rs 940 crore from anchor investors.

The company has decided to allocate around 4.09 crore equity shares to anchor investors at Rs 230 apiece.

Investors can bid for a minimum of 65 equity shares and in multiples thereof. Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Post-IPO, the public shareholding will be 12 per cent and the remaining 88 per cent will be equally held by the two promoters.

As per the Red Herring Prospectus (RHP), the company proposes to utilise Rs 1,900 crore for capital expenditure, Rs 1,058.9 crore for repayment/prepayment of its borrowings and Rs 450 crore for funding of strategic acquisitions and investments.

On the financial front, Ltd's revenue increased to Rs 24,957.28 crore for the six months ended September in the current fiscal, as against Rs 16,273.73 crore in the corresponding period of the previous year.

During the same period, profit grew to Rs 357.13 crore from Rs 288.78 crore.

The company posted a revenue of Rs 37,195.65 crore and profit of Rs 728 crore for the full 2020-21 fiscal.

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.

In the draft red herring prospectus, the company had proposed to raise up to Rs 4,500 crore but later cut the size of the IPO.

Addressing a virtual press conference on January 21, Adani Wilmar CEO and Managing Director Angshu Mallick had said the company would focus on increasing its market share in edible oils segment and grow the food business.

"We are one of the fastest growing food and FMCG companies," he had said and expressed confidence in becoming the biggest in this space in the coming years.

On the reason for reducing the IPO size, Adani Wilmar Chief Financial Officer (CFO) Shrikant Kanhere had said it was done to make the public issue more optimistic and efficient in terms of capital structure.

Currently, six Adani group are listed on the 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.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 26 2022. 21:53 IST
RECOMMENDED FOR YOU