Adani Wilmar IPO - 7 Things to Know
Adani Wilmar Ltd, has finally announced the dates for the proposed IPO. The IPO of Rs.3,600 crore will be entirely by way of a fresh issue of shares. It will open for subscription on 27th January 2022.
7 Things to Know About Adani Wilmar IPO
1) The Rs.3,600 crore IPO of Adani Wilmar Ltd will comprise entirely of a fresh issue of 1,565.22 lakh shares at the upper price band of Rs.230.
It may be recollected that the IPO size was initially set at Rs.4,500 as per the original DRHP filed. However, owing to market conditions, the company has decided to reduce the size to Rs.3,600 crore.
2) Adani has a 22 year pedigree and is a joint venture between Adani Enterprises and the Wilmar group of Singapore. Adani offers kitchen essentials like edible oil, wheat flour, rice, pulses and sugar.
Its Fortune brand edible oil is among the largest selling brands in India. Its edible oil crushing capacity is 5,000 MT per day and operates 22 plants.
3) The price band for the IPO has been fixed in the range of Rs.218 to Rs.230 per share. The market lot will comprise of 65 shares and retail investors can apply in minimum of 1 lot and maximum of 13 lots.
The maximum permissible investment in the retail quota of the IPO is Rs.194,350 crore. Employees of the company / group will get a discount of 21%. The IPO allocation will be 50% to QIBs, 35% to Retail and 15% to HNIs / NIIs.
4) Adani Wilmar IPO will open for subscription on 27-Jan 2022 and close for subscription on 31-Jan 2022. The basis of allotment will be finalized on 03-Feb while the refunds will be initiated to the bank accounts on 04-Feb.
The demat credits will happen by 07-Feb, and the stock is expected to list on the NSE and the BSE on 08-Feb. The stock with a face value of Rs.1 will be listed on the NSE and on the BSE.
5) The core product portfolio of Adani Wilmar comprises of 3 verticals viz. Edible Oils, Packaged Foods/FMCG Products and Industry Essentials. It has also launched value-added products in the market like rice bran health oil, fortified foods, ready to cook soya chunks, khichdi etc.
Adani Wilmar services a total of 16 lakh retail outlets through its 88 depots located across India and its aggregate storage capacity of 18 lakh SFT.
6) For the fiscal year ended March 2021, Adani Wilmar Ltd reported 25% YoY growth in revenues at Rs.37,196 crore and is among the leading FMCG players in India. Net profits were 58% higher YoY at Rs.728 crore in FY21 fiscal.
This is a high volume and low margin business with net margins as low as 2% in FY21. It has sustained the growth momentum in the first half of FY22 also.
7) The Adani Wilmar Ltd IPO will be lead managed by BNP Paribas, BOFA Securities, Credit Suisse, HDFC Bank, ICICI Securities, JP Morgan, Kotak Mahindra Capital acting as the book running lead managers to the issue. Link In Time Private Limited will be the registrar to the IPO.
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