Adani Wilmar IPO: Adani Group’s FMCG company to raise Rs 4,500 crore
Adani Wilmar, the edible oil firm of trade conglomerate Adani Group, has filed a draft paper with markets regulator SEBI to initiate its initial public offer (IPO) to raise up to Rs 4,500 crore to finance its expansion.
Adani Wilmar, a similar joint venture between the Adani Group and Singapore-based Wilmar, was established in 1999. It sells cooking oil as well as many other food products such as rice and sugar under the Fortune brand. The company, which aims to become a major FMCG player, has an annual turnover of over Rs 30,000 crore.
In a regulatory filing, Adani Enterprises said that Adani Wilmar Limited (AWL) has filed a draft red herring prospectus (DRHP) with SEBI for its IPO.
Adani Enterprises said, “The proposed listing of AWL on stock exchanges will include an IPO by AWL in the form of fresh issue of fresh equity shares for an amount of up to Rs 45,000 million (approximately USD 600 million).”
Adani Enterprises, the flagship firm of the Adani Group, said, “There will be no secondary offering.
Adani Wilmar proposes to use the net proceeds for expansion of its existing manufacturing plants, setting up of new facilities, repayment/prepayment of borrowings, strategic acquisitions and investments, and general corporate purposes.
“The proposed listing is intended to further the growth of AWL’s operations by increasing market visibility and awareness among current and potential customers,” the filing said.
While there is no assurance that the proposed listing will proceed, shareholders and potential investors are advised to exercise caution with the company’s securities, Adani Enterprises said.
In November last year, Gujarat-based Adani Wilmar completed 20 years of operating its flagship ‘Fortune’ brand.
AWL Deputy CEO Angshu Malik had said that the company’s revenue is over Rs 30,000 crore, with the edible oil business contributing around Rs 24,000 crore.
At present, six companies of the Adani Group are listed on the domestic stock exchanges. In addition to Adani Enterprises, others listed are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zones. Adani Wilmar also sells soap, handwash and hand-sanitizer.
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