Adani And Wilmar Eyeing $670 Million Stake Sale In Joint Venture: Report

As of this year, shares of Adani Wilmar have declined by 6.8 per cent, placing the company’s current market valuation at around $5.1 billion

In a strategic move to comply with shareholding regulations, Gautam Adani and Wilmar International Ltd. are reportedly in early discussions with banks to sell a minority stake in their joint venture, Adani Wilmar Ltd. Sources privy to the development told Bloomberg that the owners are contemplating selling equal stakes that could total 13 per cent of the Mumbai-listed company.

The proposed sale, which insiders have valued at approximately $670 million based on Tuesday’s market prices, could occur in the coming months. As of this year, shares of Adani Wilmar have declined by 6.8 per cent, placing the company's current market valuation at around $5.1 billion.

The sale could be executed in one or multiple tranches, contingent upon investor interest, the sources added. Adani and Wilmar are required to reduce their combined holding to 75 per cent by February next year to meet the Securities Exchange Board of India (SEBI) guidelines.

Discussions are still ongoing, and specifics such as the exact size and timing of the stake sale could be subject to change. Representatives from Adani Group and Wilmar International declined to comment, while Adani Wilmar did not provide an immediate response to Bloomberg.

Currently, Adani and Wilmar hold nearly 88 per cent of Adani Wilmar's shares. SEBI mandates that large firms must ensure at least 25 per cent of their shares are available to the public within three years of listing.

Adani Wilmar, established in 1999, produces the Fortune brand of cooking oils, wheat flour, pulses, rice, and sugar. The company operates 23 plants across 10 states in India.

Meanwhile, Gautam Adani plans to commence shipbuilding at Adani Group's flagship Mundra Port, responding to the fully booked shipyards in China, South Korea, and Japan until 2028, according to a report by The Economic Times. This initiative is poised to position India as an alternative manufacturing hub for global fleet owners seeking new vessels.