Adani Wilmar and Star Health Get SEBI Approval for IPO
With a slew of IPOs already slated to hit the primary market in the last week of October, there are more big IPOs getting lined up. Two more companies got SEBI approval for their proposed IPOs and can now seriously start actioning the IPO process.
Adani Wilmar IPO
Adani Wilmar, the FMCG company and a joint venture between Adani Group and Wilmar of Singapore, has got approval for its proposed Rs.4,500 crore IPO. The entire IPO will be a fresh issue of shares. The Adani Wilmar joint venture proposes to use the fresh funds to expand the business organically and inorganically as well as to build its brand.
Adani Wilmar will become the seventh listed company from the Adani fold, once the IPO is through and the stock gets listed. Adani Wilmar (of Fortune edible oil brand fame) has plans to become India’s largest food-based FMCG company by 2027. Apart from being a food retailer, Adani Wilmar will target to own the entire food ecosystem from farm to fork.
The IPO price band is yet to be decided but it is reported to value Adani Wilmar at around Rs.45,000 crore to begin with. Since, Adani Enterprises owns 50% in the joint venture, the company will see value discovery to the tune of Rs.22,500 crore due to the IPO. However, there will not be any OFS component in the Adani Wilmar IPO.
Star Health Insurance IPO
The Star Health Insurance IPO of Rs.5,500 crore will be a combination of fresh issue and an offer for sale. The fresh issue component will be worth Rs.2,000 crore. The balance Rs.3,500 crore approximately will be accounted for by the OFS of 6.01 crore shares in an indicative price band of Rs.580 to Rs.600.
The biggest seller in the OFS will be Safecrop Investments selling close to 3.07 crore shares. The rest will be sold by other early investors in the company as well as some early promoters. Incidentally, Rakesh Jhunjhunwala is one of the early investors in the company, although he is reportedly not participating in the OFS.
Check - Rakesh Jhunjhunwala's Portfolio
The fresh issue proceeds will be used by Star Health to create a capital cushion and for maintaining solvency levels. Star Health is the largest private sector player in the health insurance space with 15.8% market share.
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