'No Such Event', Clarifies Adani Group On Report Of Plans To Exit Wilmar Joint Venture

Earlier, on August 8, it was reported that the Gautam Adani-led group was considering selling stakes in its partnership with Wilmar International Ltd. to release capital for their core business

Adani Enterprises on Thursday clarified on reports that the company is planning to sell its stake in the FMCG joint venture Adani Wilmar. The port-to-power conglomerate said that there is no such event that requires disclosure. Earlier, on August 8, it was reported that the Gautam Adani-led group was considering selling stakes in its partnership with Wilmar International Ltd. to release capital for their core business.

"We would like to clarify that as of now, there is no such event concerning the media report, which requires any disclosure from the Company side in accordance with the Regulation 30 of SEBI Listing Regulations. In the event there is any development that requires disclosure under the Regulation 30 of the SEBI Listing Regulations, we will disclose the same in accordance with the regulatory requirements," the Adani Enterprises in a regulatory filing.

Earlier this week, Bloomberg citing people familiar with the matter reported that Adani has been contemplating the potential sale of its stake for several months. This move aims to release capital for its primary business activities. The discussions regarding the stake sale are in their early stages, and there's a possibility that Adani Enterprises might decide to retain its ownership. The stake held by Adani is estimated at around $2.7 billion.

Adani and Wilmar jointly established the partnership in 1999, with equal shares. Following an IPO launched in February 2022 to raise Rs 3,600 crore, their respective holdings were reduced to 43.97 per cent each.

Following a report from US-based short-seller Hindenburg Research in January this year, Adani Wilmar's value has dropped by approximately 36 per cent, resulting in a market capitalisation of about $6.2 billion. The report accused the Adani Group of price manipulation and other misconduct. Despite the group's repeated denial of the allegations, its collective market capitalisation plunged by over $150 billion, at one point. 

On August 10, Adani Enterprises closed 1.18 per cent higher at Rs 2,552.10, while Adani Wilmar concluded 1.31 per cent lower at Rs 373.25 on the BSE. For the first quarter ending June 30, 2023, Adani Wilmar posted a net loss of Rs 79 crore due to a decrease in edible oil prices and elevated inventory costs.