Adani Wilmar IPO to be Opened to Raise About Rs 3,600 Cr on Thursday

Adani Wilmar, a large edible oil company, will launch an Initial Public Offering (IPO) on Thursday to generate up to Rs 3,600 crore (IPO). As the firm strives to become India’s largest food and FMCG firm, the revenue of the public offering would be utilized to finance capital expenditures, minimize debt, and make acquisitions.

The public offering, which will consist of new equity shares, shall begin accepting subscriptions on January 27 and end on January 31. The pricing range for the stock is Rs 218-230 for each share.

Adani Wilmar is a 50:50 joint project between the Adani group and Singapore-based Wilmar that offers cooking oils and other food goods under the Fortune brand.

Adani Wilmar Ltd received Rs 940 crore through anchor investors on Tuesday. The firm has issued 4.09 crore shareholdings to anchor investors for Rs 230 per share.

Investors can place bids for as few as 65 equity shares with as many as they want. Qualified institutional purchasers will receive a portion of the issue size, a retail investor would receive 35%, and non-institutional investors would receive 15%.

Following the IPO, the public will own 12% of the company, with the other 80% held evenly by the 2 developers.

The company plans to spend Rs 1,900 crore on capital costs, Rs 1,058.9 crore on existing debt, as well as Rs 450 crore for strategic acquisitions funding and investments, according to the Red Herring Prospectus (RHP).

Adani Wilmar Ltd’s revenue grew to Rs 24,957.28 crore for the 6 months concluded September in the present fiscal year, up from Rs 16,273.73 crore in the earlier year’s equivalent period.

Profit increased to Rs 357.13 crore from Rs 288.78 crore over the same time. For the complete fiscal year 2020-21, the company had revenue of Rs 37,195.65 crore as well as profits of Rs 728 crore.

Adani Wilmar also sells wheat flour, rice, and sugar in addition to cooking oils. Non-food items like handwash, soap, and sanitizers are also available.

The firm had planned to raise Rs 4,500 crore in the original red herring brochure. However, the amount of the IPO was eventually reduced. Six Adani group firms are presently listed on domestic stock exchanges.