Adani Wilmar IPO opens: Price band and other things to know

Published on Jan 27, 2022 12:29 PM IST

The company, part of Adani Group and Wilmar International, is most popularly known for selling cooking oil under the 'Fortune' brand.

The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad.(REUTERS)
The logo of the Adani Group is seen on the facade of one of its buildings on the outskirts of Ahmedabad.(REUTERS)

Edible oil major Adani Wilmar on Thursday hit the capital market to raise up toinIt also sells other food products such as rice, wheat flour etc. Adani Wilmar also sells non-food products like soap, handwash, and sanitisers.

Both Adani Group and Wilmar International share 50:50 equity in the company.

Funds use

As the company is seeking to become India's biggest food and Fast-moving consumer goods (FMCG) company, it is aiming to use the proceeds of the public issue to fund capital expenditure. The company has also planned to use the funds to reduce debt and for acquisitions. 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.

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

Allocation

Adani Wilmar has decided to allocate around 4.09 crore equity shares to anchor investors at 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.

Financial background

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

During the same period, profit grew to 357.13 crore from 288.78 crore. The company posted a revenue of 37,195.65 crore and profit of 728 crore for the full 2020-21 fiscal.

"We are one of the fastest-growing food and FMCG companies," Adani Wilmar CEO and Managing Director Angshu Mallick in a press conference on January 21.

Currently, six Adani group companies are listed on the domestic stock market. Apart from Adani Enterprises, other entities that are listed include Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone.

(With agency inputs)

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