Adani Wilmar IPO ends with strong subscription

Published on Feb 01, 2022 09:55

The initial public offer (IPO) of Adani Wilmar received bids for 212,87,80,550 shares as against 12,25,46,150 shares on offer. The issue was subscribed 17.37 times.

The non-institutional investors (NII) category was subscribed 56.30 times. The qualified institutional buyers category was subscribed 5.73 times. The retail investors category was subscribed 3.92 times.

The issue opened for bidding on 27 January 2022 and it closed on 31 January 2022. The price band of the IPO was fixed at Rs 218-230.

The IPO comprised of fresh issue of equity shares worth up to Rs 3600 crore. The objectives for the fresh issue are capital expenditure of Rs 1900 crore, repayment or prepayment of outstanding borrowings for Rs 1058.9 crore, funding strategic acquisitions and investments for Rs 450 crore and general corporate purposes.

Ahead of the IPO, Adani Wilmar on 25 January 2022, finalized allocation of 4,08,65,217 equity shares to anchor investors at an allocation price of Rs 230 per share, aggregating to Rs 939.89 crore.

Adani Wilmar is among a few large FMCG food companies in India to offer most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. The company`s products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups. Essential commodities, such as edible oils, wheat flour, rice, pulses and sugar, account for approximately 66% of the spend on essential kitchen commodities in India.

The company has 22 plants are strategically located across 10 states in India, comprising 10 crushing units and 19 refineries with an aggregate designed capacity of 8,525 MT per day and 16,285 MT per day, respectively, as of September 30, 2021. Out of the 19 refineries, ten are port-based to facilitate use of imported crude edible oil and reduce transportation costs, while the remaining are typically located in the hinterland in proximity to raw material production bases to reduce storage costs. The company`s refinery in Mundra is the one of the largest single location refineries in India with a designed capacity of 5,000 MT per day. In addition to the 22 plants it owns, it also used 36 leased tolling units as of September 30, 2021, which provided with additional manufacturing capacities.

The company intends to further expand its distribution network with an omni-channel approach. It aims to expand its online reach in India from current 25 cities to 100 cities in the next few years. It also aims to have more than 40 Fortune Mart stores opened across India in the next few years.

Adani Wilmar reported a net profit of Rs 357.13 crore on sales of Rs 24,874.52 crore in six month ended September 2021.