Adani Wilmar Makes Muted Debut; Recovers Later, Surges Over 17%

Adani Wilmar’s initial public offering saw more than 17 times the demand for the shares on offer last month

New Delhi: Edible oil major Adani Wilmar shares on Tuesday made a mute market debut but later recovered the lost ground to surge over 17 per cent against the issue price of Rs 230.

The stock made its debut at Rs 221, a discount of 3.91 per cent from the issue price on the BSE. However, later the shares recovered. Similarly, at the NSE, it declined 1.30 per cent to list at Rs 227, then bounced back and zoomed later in the day.

At 12 pm, Adani Wilmar, the joint venture between Adani Group and Wilmar Group of Singapore, was trading at Rs 258 apiece, up 17.15 per cent. The company has a market valuation of Rs 31,770.64 crore on the BSE.

Adani Wilmar’s initial public offering (IPO) saw more than 17 times the demand for the shares on offer last month. The firm had set a price band of Rs 218-230 per share for the IPO, which opened for bidding on January 27. Branded products account for about 73 per cent of sales of edible oil, food and FMCG in FY20-21.

After the IPO, the public shareholding will be 12 per cent and the remaining 88 per cent will be equally held by the two promoters, PTI said in a report.

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

On the financial front, Adani Wilmar’s revenue increased to Rs 24,957.28 crore for the six months ended September in the current financial year, as against Rs 16,273.73 crore in the corresponding period of the previous year. During the same period, profit grew to Rs 357.13 crore from Rs 288.78 crore.

The company logged a revenue of Rs 37,195.65 crore and profit of Rs 728 crore in the FY20-21.

Set up in 1999, Adani Wilmar is an FMCG food company offering most of the essential kitchen commodities, including edible oil, flour, rice, pulses and sugar.

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.