The Share Price of Adani Company are Drastically Enhanced Post-IPO

Adani Wilmar, an edible oil company, set the agreed fee of initial public offering (IPO) of Rs 3,600 crore at Rs 230 for each share on Friday. Adani Enterprises stated in a regulatory filing that Adani Wilmar had approved the issuance cost at Rs 230 per share for the equity shares.

The share price of Adani Company

The IPO’s price range was Rs 218-230 for each share.

Adani Wilmar has authorized the allotment and issuance of 15,67,29,745 shares to the different applicants. The company’s initial public offering (IPO) began on January 27 and ended on January 31.

The initial public offering (IPO) was oversubscribed by over 17 times. Retail investors bought 3.92 times their allotment of shares.

As the company strives into becoming India’s largest food and FMCG company, the profits of the public offering will be utilized to fund capital expenditures, minimize debt, plus make acquisitions.

Adani Wilmar is indeed a 50:50 joint venture between corporate conglomerate Adani Group with Singapore-based Wilmar, which offers cooking oils and other culinary goods underneath the Fortune brand.

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

The company plans to spend Rs 1,900 crore upon capital expenditure, Rs 1,058.9 crore on debt repayment/prepayment, as well as Rs 450 crore for strategic acquisitions but also investments, according to the Red Herring Prospectus (RHP).

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

Profit increased from Rs 288.78 crore to Rs 357.13 crore over the same time.

Within 2020-21, the company had a profit worth Rs 728 crore on revenue worth Rs 37,195.65 crore.

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