Adani Wilmar's share sale through initial public offering (IPO) will open on January 27 and end on January 31. The company is planning to raise Rs 3,600 crore through IPO by selling shares in the price band of Rs 218-230 per share. A retail investor can bid for minimum one lot of 65 shares upto maximum of 13 lots. At the upper price band, one lot of Adani Wilmar shares will cost Rs 14,950.
50 per cent of the shares in the IPO are reserved for qualified institutional buyers (QIBs), which include financial institutions, foreign institutional investors, banks and insurance companies. 35 per cent of shares are reserved for retail investors and 15 per cent of the portion is set aside for non-institutional investors, which also include high net worth individuals.
Employees of the company will be offered a discount of Rs 21 per share.
The Ahmedabad-based Adani Wilmar, is a joint venture between Adani Group and the Wilmar Group. The company is an FMCG company engaged in manufacturing edible oil, wheat flour, rice, pulses, and sugar.
The company markets popular edible oil brand Fotune, which is the country's largest selling edible oil brand. Recently the company has focused on value-added products and has launched products such as edible oil products, rice bran health oil, fortified foods, ready-to-cook soya chunks, khichdi, etc in line with this. The company has strong raw material sourcing capabilities and was India's largest importer of crude edible oil as of March 31, 2021.
The company operates 22 plants located across 10 states in India, comprising 10 crushing units and 19 refineries. The company's refinery in Mundra is one of the largest single-location refineries in India with a capacity of 5,000 MT per day.
The objectives of the IPO are funding capital expenditure for expansion of existing manufacturing facilities and developing new manufacturing facilities, repayment/prepayment of borrowings, funding strategic acquisitions and investments and general corporate purposes.
For financial year ending March 2021, Adani Wilmar reported net profit of Rs 727.65 crore, marking an increase of 58 per cent from Rs 460.87 crore in financial year 2020.
Kotak Mahindra Capital Company, J.P. Morgan India, BofA Securities India, Credit Suisse Securities, ICICI Securities, HDFC Bank and BNP Paribas are the book running lead managers to the issue while Link Intime is the registrar to the issue.