Adani Wilmar IPO subscribed 17.4 times on heavy HNI, shareholder interest

The firm has set price band at Rs 218-230 per share. At the top-end, the company's market cap works out to nearly Rs 30,000 crore

Adani Wilmar’s IPO saw over 17 times more demand than shares on offer. The issue garnered bids for 2.1 billion shares, worth over Rs 48,000 crore. The qualified institutional buyer (QIB) portion of the IPO was subscribed 5.73 times, high networth individual (HNI) 56 times and retail nearly 4 times. The shareholder category saw 33 times subscription, while employee quota remained undersubscribed at 51 per cent.

Adani Wilmar, a joint venture between the Adani group and Wilmar group, 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 Adani group firm has set the price band for the IPO at Rs 218-230 per share. At the top-end, the company’s market cap works out to nearly Rs 30,000 crore. Through the IPO, Adani Wilmar raised Rs 3,600 crore in fresh capital.

“Considering the trailing 12-month (Sep 21) earnings per share of Rs.6.12 on a post-issue basis, the company is going to list at a P/E of 37.6 times. Its peers, namely Nestle and Britannia Industries, are trading at PE of 81.6 times and 54.7 times respectively,” said a note by Marwadi Shares.

For the year 2020-21, the company had reported net profit of Rs 728 crore on revenues of Rs 3,790 crore.