Adani Wilmar gains 16% on trading debut, ends at Rs 267.4 at close

Stock had slipped below issue price to touch a low of Rs 227. But strong buying saw it end near day's high. Shares worth Rs 3,397 cr changed hands on NSE and another Rs 191 crore on BSE

Shares of Adani Wilmar rose more than 16 per cent during their trading debut on Tuesday. The stock ended at Rs 267.4, with up Rs 37.4 over issue price of Rs 230. It had slipped below issue price to touch a low of Rs 227. But strong buying saw the stock end near the day’s high. Shares worth Rs 3,397 crore changed hands on the NSE and another Rs 191 crore on the BSE.

Adani Wilmar, which enjoys the highest market share in branded edible oil, has become the seventh Adani group firm to list on the bourses.

The company is an equal joint venture between Gautam Adani-led Adani Enterprises and Singapore’s Wilmar International. Adani Wilmar’s Rs 3,600-crore IPO, which closed last month, had seen 17 times more demand than shares on offer.

 

Through the IPO, the company raised Rs 3,600 crore in fresh capital, which will be used for setting up new plants, retiring debt and making strategic acquisitions.

Market players said the first day performance was encouraging considering the weak market environment.  

The company had to downsize its IPO to align to market conditions. Earlier, it had intended to raise Rs 4,500 crore.

Adani Wilmar sells its products under the Fortune brand. It offers products such as cooking oils, wheat flour, rice, pulses, sugar and other food products.

In FY21, Adani Wilmar had reported net profit of Rs 728 crore on revenues of Rs 37,090 crore.

The company is currently valued at around Rs 34,500 crore. Following the IPO, the promoter stake in the company has declined from 100 per cent to 87.92 per cent.