Adani Wilmar: Another multibagger Adani stock on the list?
The stock gained about 67% in the first week on the exchange.
Adani Wilmar is a smallcap company, primarily engaged in the business of selling cooking and edible oil under the brand FORTUNE. Besides oil, the company has a wide range of products, such as wheat, flour, rice, pulses, sugar, and packaged food. With a market capitalization of Rs 4354 crore, it has a good presence in its sector.
Adani Wilmar had opened its three-day initial public offering (IPO) on January 27 and the issue closed on January 31. The issue was subscribed more than 17 times. The edible oil major had finalized the issue price of its Rs 3,600 crore initial share sale at Rs 230 per share. The funds will be used for setting up new plants, repaying debt and making strategic acquisitions.
With this, the stock of Adani Wilmar had listed on the Indian exchanges on 8th February 2022. To everyone’s surprise, the stock was listed with a discount of 4% over its issue price. However, the market participants showed a great buying interest in the stock as it surged about 20% on its listing day, locking in the upper circuit. The next four days showed an amazing buying response and the stock surged over 80% and hit the high of 419.90. However, a little profit booking saw the stock to close at 381, gaining about 67% in the first week. Traders looking to capture such high momentum stocks can consider taking a position in this stock.
With such a positive response, the stock has become a hot topic among traders. Adani Wilmar started the IPO season of 2022, as has been a major success. With such a strong opening to the IPO season, it shall bring positive sentiment among the IPO bidders, and companies that look to file papers for their IPO.
The company has strong fundamentals and being a part of the Adani group of stocks, it has strong support from investors. Market participants who wish to invest for the long term can consider this stock in their portfolio.
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