IPO Update: Adani Wilmar IPO Ends with Strong Subscription, Got Subscribed 17.3 times

On its final day on Monday, the initial public offering of edible oil major Adani Wilmar Limited (AWL), an edible oil company known for the Fortune brand, received 17.37 times subscription. According to a BSE update, the IPO got bids for 2,12,87,80,550 shares against the 12,25,46,150 shares on offer.

On Thursday, January 27, the three-day initial public offering (IPO) began. For its 3,600-crore initial share offer, which ended on January 31, the business specified a price range of 218-230 rupees per share.

The retail quota was oversubscribed 3.92 times, while the HNI part was oversubscribed 56.30 times. On the final day, the QIB piece received 5.73 percent bids, while the employee portion received 51 percent. During the bidding process, the company has reserved equity shares worth Rs 107 crore for its eligible employees, who would receive a discount of Rs 21 per share.

Anchor investors include the Singapore government, the Monetary Authority of Singapore, Societe Generale, Jupiter India Fund, HDFC Mutual Fund (MF), Nippon India MF, and Aditya Birla Sun Life MF. Anchor investor bidding began on January 25th, and it raised Rs 940 crore for the company.

Capital expenditure of Rs 1900 crore, return or prepayment of outstanding borrowings of Rs 1058.9 crore, funding strategic acquisitions and investments of Rs 450 crore, and general business purposes are the goals of the new issue.

Gautam Adani’s Adani group and Singapore’s Wilmar group have formed a 50:50 joint venture called Adani Wilmar. Adani Wilmar is one of the few significant FMCG food firms in India to supply most of the fundamental kitchen commodities, such as edible oil, wheat flour, rice, lentils, and sugar, to Indian consumers. The company’s products are sold under a variety of brand names and range in price to appeal to a wide range of customers. Essential kitchen commodities, such as edible oils, wheat flour, rice, lentils, and sugar, account for almost 66 percent of India’s spending on such items.

As of September 30, 2021, the firm had 22 plants strategically positioned across 10 Indian states, including 10 crusher units and 19 refineries with aggregate designed capacities of 8,525 MT per day and 16,285 MT per day, respectively. Ten of the 19 refineries are port-based, allowing for easier use of imported crude edible oil and lower transportation costs, while the remaining refineries are typically located in the hinterland, close to raw material production bases, lowering storage costs. With a designed capacity of 5,000 MT per day, the company’s refinery at Mundra is one of India’s largest single-location refineries.

As of September 30, 2021, it utilised 36 leased tolling units in addition to the 22 facilities it owns, providing additional manufacturing capacity. According to a recent research by Ventura, a trading business, AWL was among the top five fastest-growing packaged food firms in India by revenue over FY15-20. AWL’s revenues are expected to expand at a healthy CAGR of 16.7% to Rs 58,959 crore during FY21-24, according to this firm’s forecast. In the six months ended September 2021, Adani Wilmar reported a net profit of Rs 357.13 crore on sales of Rs 24,874.52 crore.

By February 8, 2022, the Adani Wilmar IPO share allotment is planned to be listed on the BSE and NSE stock exchanges. Subscribers would have to wait for the Adani Wilmar IPO’s allotment status to be announced. Subscribers can check their application status on the official website of the Bombay Stock Exchange (BSE) and the company’s official registrar for the IPO Link Intime as the allotment status is disclosed.