Adani Wilmar IPO: Adani Wilmar IPO is all set to hit the markets in two days from now. The multi-crore initial share sale of fast moving consumer goods or FMCG company Adani Wilmar will open on January 27 and close on January 31, a day before the budget presentation. The company, led by Indian business tycoon Gautam Adani and Singapore-based firm Wilmar, plans to raise Rs 3,600 crore through this offer. This will be the second IPO of the year, and is one of the most anticipated ones in the market. However, the public offering will open at a time when the stock markets in India have crashed for six consecutive days till Wednesday, among several factors.
Here are 10 key things to know Adani Wilmar IPO
Problem Size: Adani Wilmar Limited plans to raise Rs 3,600 crore through its maiden public offering. Initially, the company had an initial plan to raise Rs 4,500 crore through IPO.
IPO Dates: The public issue of Adani Wilmar Limited will open on January 27 and close on January 31, the company announced. The listing of the IPO is likely to happen on February 8, which is next month.
Adani Wilmar IPO Price Band: The price band for the initial share sale of the company has been fixed at Rs 218 to Rs 230 per equity share.
big size: The firm has said that bidders can buy at least 65 shares and in multiples of 65.
Reserved Part: Eligible institutional buyers will be able to buy 50 per cent of the shares, while 35 per cent has been reserved for retail buyers. The remaining 15 per cent of the shares can be used by non-institutional buyers.
Adani Wilmar IPO GMP Today: The unlisted shares of Adani Wilmar IPO were paying a premium of Rs 50 amid a fall in the stock market today, which slipped from a premium of Rs 70 received a day earlier.
Objectives of the issue: IPO involves only fresh issue of shares. From the net income, Rs 1,900 crore will be used for capital expenditure, another Rs 1,058.9 crore will be used for repayment/prepayment of borrowings. The remaining Rs 450 crore will be used to finance strategic acquisitions and investments.
key strengths: Adani Wilmar Limited, known for its edible oil ‘Fortune’, is a leading consumer products company in the branded edible oil and packaged food business. The company has an integrated business model with well-established operational infrastructure and strong manufacturing capabilities as well as an extensive pan-India distribution network.
company valuation: In terms of valuation, the post-issue TTM works out to P/E
37.6x (at the upper end of the issue price band), which is worth considering
AWL’s historical top-line and bottom-line CAGR of 13 per cent and 39 per cent respectively in FY19-21, AngelOne said in a note.
Should you invest: “Adani Wilmar has strong brand recall, wide distribution,
Better financial track record and healthier ROE. taking into account all the positives
factors, we believe this assessment is at an appropriate level. Thus, we recommend that a
membership rating on this issue,” AngelOne said in its IPO note.
Choice Broking in a note said, “Its (Adani Wilmar IPO) edible oil business is likely to have a secular growth trend, but there is a huge untapped market for its food and FMCG business segment. Thus considering the above observations.” In doing so, we provide a “subscribe” rating for this issue.
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