Adani Wilmar initial public offering (IPO) saw a tepid response from investors on day one. This was the second IPO of 2022, after AGS Transact Technologies public issue. Adani Wilmar is a fast-moving consumer goods (FMCG) company known for edible oil ‘Fortune’. Adani Wilmar IPO is a complete fresh issue of equity shares of Rs 3,600 crore and no existing promoters or shareholders will be selling any shares. The edible oil major on Tuesday said it has garnered Rs 940 crore from anchor investors.
Adani Wilmar IPO comprises a fresh issue of new equity shares of face value Re 1 for an amount of up to Rs 3,600 crore, the filing said. Promoters and existing shareholders are not offloading their stake via OFS in the issue.
Adani Wilmar IPO: Subscription Status
Adani Wilmar IPO was subscribed 0.57 times by day one of bidding whereas its retail portion has been subscribed 0.96 times, according to the data available at NSE. The company has trimmed its issue size to Rs 3,600 crore from Rs 4,500 crore earlier. It has reserved equity shares aggregating up to Rs 107 crore for its eligible employees, who will get a discount of Rs 21 per share during the bidding process.
Adani Wilmar IPO: GMP
Shares of the company are currently commanding a grey market premium (GMP) of 25 per cent, which is Rs 50 per share from the IPO price.
Adani Wilmar IPO: Should you Subscribe?
“The company has differentiated and diversified product portfolio with market-leading brands. Also, the company is one of India’s leading consumer product companies with leadership in edible oil and packaged food business along with strong raw material sourcing capabilities & integrated business model with well-established operational infrastructure and strong manufacturing capabilities,” Hem Securities said.
The brokerage has assigned a “subscribe” rating to the public issue.
The company has cemented its market leadership in the edible oil industry in India and has consistently been churning profits since FY19, said Arihant Capital with a recommendation to ‘subscribe’ to the issue.
“The company has a promising growth trajectory enforced by its capable management and constant product innovation,” the brokerage firm added.
Kotak Mahindra Capital, JP Morgan India, BofA Securities India, Credit Suisse Securities (India), ICICI Securities, HDFC Bank and BNP Paribas are the book running lead managers to the issue. Link Intime India has been appointed as registrar to the IPO. The equity shares of the company will be listed on both BSE and NSE.
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