New Delhi: Edible Major Oil Adani Wilmar on Thursday crashed into the capital market to increase up to RS 3,600 Crore through an initial public offering (IPO).
The results of public problems will be used to fund capital expenditure, reduce debts and for acquisitions as companies try to become the largest food and FMCG companies in India.
Public problems, consisting of fresh equity shares, will be closed on January 31.
The price ribbon is Rs 218-230 per share.
Adani Wilmar, who sells cooking oil and several other food products under Fortune Brand, is a joint venture of 50:50 between Singapore-based Adani Group and Wilmar business conglomerates.
On Tuesday, Adani Wilmar Ltd has collected Rs 940 Crore from an investor anchor.
The company has decided to allocate around 4.09 crore equity shares to an investor anchor at RS 230 respectively.
Investors can bid for a minimum of 65 equity shares and in its multiples.
Half the size of the problem has been reserved for eligible institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
Post-IPO, public share ownership will be 12 percent and the remaining 88 percent will be equally held by both promoters.
According to the Red Herring Prospectus (RHP), the company proposes to take advantage of 1,900 crore rs for capital expenditure, RS 1,058.9 Crore for payment / payment in advance of its loan and Rs 450 Crore for funding acquisition and strategic investment.
At the Finance Front, Revenue Adani Wilmar Ltd increased to RS 24,957.28 Crore for the six months ending September in the current fiscal, due to RS 16,273.73 Crore in the same period the previous year.
During the same period, profit grew to RS 357.13 Crore from RS 288.78 Crore.
The company posted revenue of Rs 37,195.65 Crore and 728 Crore Hospital Profit for Full Fiscal 2020-21.
In addition to cooking oil, Adani Wilmar sells food products such as rice, wheat flour, and sugar.
It also sells non-food products such as soap, handwash, and sanitiser.
In the draft red herring prospectus, the company has proposed to increase up to RS 4,500 crore but then cut the size of the IPO.
Overcoming the Virtual Press Conference on January 21, CEO of Adani Wilmar and the Angshu Mallick Managing Director said the company would focus on increasing its market share in edible oil segments and fostering food businesses.
“We are one of the fastest growing food and FMCG companies,” he said and expressed confidence to be the biggest in this space in the coming years.
For the reason for reducing the size of the IPO, Chief Financial Officer Adani Wilmar (CFO) Shrikant Kanhere said it was done to make public problems more optimistic and efficient in terms of capital structure.
At present, six adani group companies are registered on domestic exchanges.
Apart from Adani Enterprises, the other registered is Adani’s transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Port Adani and Special Economic Zones.