How do you see the Adani Wilmar IPO opening on 27-January?
Answer
Answer
The details of the issue have been just announced in the last week. The IPO size will be Rs.3,600 crore and will entirely be a fresh issue. The original issue size was supposed to be Rs.4,500 crore but was later reduced due to market conditions. The company will sell 1,565.22 lakh shares at the upper price band of Rs.230, resulting in total IPO collections of Rs.3,600 crore via IPO.
Adani Wilmar needs no introduction and is quite popular player in the FMCG space. It has a 22 year pedigree and is a JV between Adani Enterprises and the Wilmar group of Singapore. Adani basically offers kitchen essentials like edible oil, wheat flour, rice, pulses and sugar. Its Fortune edible oil is one of the largest selling brands in India. Adani Wilmar currently has a crushing capacity of 5,000 MT per day spread across its 22 plants located in India.
The price band for the IPO is in the range of Rs.218 to Rs.230. The stock will have a minimum market lot size of 65 shares. Retail investors can apply in minimum of 1 lot and maximum of 13 lots. The maximum permissible investment in the retail quota is 845 shares worth Rs.194,350 crore. The IPO allocation is 50% to QIBs, 35% to Retail and 15% to HNIs / NIIs. Employees have a quota with 21% discount while shareholders also have a quota.
Now for some important dates. Adani Wilmar IPO opens for subscription on 27-Jan and closes on 31-Jan 2022. The demat credits will happen by 07-Feb, while the stock is expected to get listed on the NSE and BSE on 08-Feb. Adani also makes value-added products like rice bran health oil, fortified foods, ready to cook soya chunks, khichdi etc. IT services 16 lakh retail outlets through its 88 depots with aggregate storage capacity of 18 lakh SFT.
For FY21, Adani Wilmar reported sales of Rs.37,196 crore and net profits of Rs.728 crore. Net margins are as low as 2% in this business. The IPO will be lead managed by BNP Paribas, BOFA Securities, Credit Suisse, HDFC Bank, ICICI Securities, JP Morgan, Kotak Mahindra Capital acting as the book running lead managers to the issue. Link In Time Private Limited will be the registrar to the IPO.