Adani Wilmar IPO Details: Adani Wilmar, incorporated in the year 1999 as a joint venture between Adani Groupand the Singapore-based Wilmar Group, is one of the biggest FMCG companies in India with around 40 plants all over India having an oil refining capacity of 16000 tonnes. It offers a wide variety of kitchen essentials, including edible oil, sugar, pulses, flour, and rice and also personal care products like soaps, hand sanitizers, etc.
Among the various brands that it runs, Fortune is the most famous and the biggest. The brand started with edible oils under its name but now offers a whole range of flour, edible oils, spices, etc. thereby the largest edible oil brand in India capturing about 20% of the market share. Apart from this, the company also deals in industrial supplies like oleochemicals, castor oil, and its derivatives, etc., and is, therefore, the biggest castor oil manufacturer, the largest oleochemical manufacturer, and the largest crude oil importer in the country.
Adani Wilmar IPO Details
Adani Wilmar IPO is reported to be launched in January 2022 making it the 7th Adani-owned company to be listed in the stock exchanges. As per the Draft Red Herring Prospectus (DRHP), the issue size of Adani Wilmar IPO would be around ₹ 4500 Cr that would be spread across various classes of investors. The company has also planned to make a “Shareholder’s Quota” for which the eligibility is a minimum of 1 shareholding in Adani Enterprises. The following are the details of Adani Wilmar IPO regarding its issue date, issue size, lot size, issue price, etc., at a glance:
| Issue Open Date | January 2022 |
| Issue Close Date | January 2022 |
| Issue Type | Book Built Issue |
| IPO Size | ₹ 4500 Cr (approx.) |
| Fresh Issue | ₹ 4500 Cr (approx.) |
| Face Value | ₹ 1 Per Equity Share |
| Price Band | ₹- to ₹- Per Equity Share |
| Listing Exchanges | BSE and NSE |
| QIB | 50% |
| Retail | 35% |
| NII | 15% |
| Discount | N/A |
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Adani Wilmar IPO Objectives
As per the DRHP submitted to SEBI, Adani Wilmar has the following objectives to be fulfilled by the proceeds of the IPO:
- ₹ 1900 Cr for financing the Capital Expenditures to expand the manufacturing facilities;
- ₹ 1170 Cr for the repayment/prepayment of the borrowings;
- ₹ 500 Cr for the funding of strategic acquisitions and investments; and
- The remaining balance out of the net proceeds for general corporate purposes (shall not exceed 25% of the net proceeds).
Fundamentals
Adani Wilmar reported a net profit of ₹ 460.8 Cr for FY 2020 and total revenue of ₹ 37,195.6 Cr and a net profit of ₹ 727.6 Cr in FY 2021 showing an increase of around 58% from the previous year, thereby increasing its net worth from ₹ 2,570 Cr in FY 2020 to ₹ 3,298 Cr in FY 2021. The company also reported the total debts of ₹ 1,910 Cr in FY 2021 which is less than the debts for FY 2020 (₹ 2,300 Cr).
Adani Wilmar Promoters
Adani Wilmar currently has a total of three promoters namely, Adani Enterprises Limited (AEL), Adani Commodities LLP (ACL), and the Singapore-based Lence Pte. Limited (LPL). As per the DRHP, the pre-issue shareholdings of the promoters are as follows:
- Adani Enterprises Limited(AEL) has Nil shareholding in the company;
- Adani Commodities Limited (ACL) owns a total of 57 crore shares accounting for 50% of the shareholding in the company;
- The remaining 50% of shareholding is held by Lence Pte. Limited (LPL)
So far as the post-issue shareholdings of the company are concerned, reports claim that the existing shareholders (AEL, ACL, and LPL) would not be selling any stakes they hold in the company. The Adani Wilmar IPO would be a fresh issue for the public.
Book Building Proportion
Adani Wilmar IPO is an issue of about ₹ 4500 Cr, out of this, 50% of the shares are dedicated for the Qualified Institutional Buyers (QIB), 35% of the issue is dedicated for Retail Individual Investors (RII), and the remaining 15% is dedicated to the Non-Institutional Investors (NII). Apart from this, the DRHP also states a reservation for employees and a special reservation for existing shareholders wherein a shareholder must be owning a minimum of 1 share in AEL to be eligible for the same.
Registrars and Lead Managers
As per the DRHP, the registrar appointed for Adani Wilmar Initial Public Offering is Link Intime India Private Limited.
The Lead Managers for Adani Wilmar IPO are as follows:
- Kotak Mahindra Capital Company Limited
- J.P Morgan India Private Limited
- BofA Securities India Limited
- Credit Suisse Securities (India) Private Limited
- ICICI Securities Limited
- HDFC Bank Limited
- BNP Paribas
Final Words
In the end, we would just like to say that the Adani Wilmar IPO can be expected to step into the market anytime soon, and as an investor, a decision for going with the IPO could be fruitful. Just like the shares of other six Adani-owned listed companies who have performed very well in the long run, Adani Wilmar is also expected to run on the same path. With an infusion of ₹ 4500 Cr, most of which would be used for capital expenditure, the FMCG giant is likely to surpass all its competitors and might also increase its market share in the FMCG industry.
