Why has the stock of Adani Wilmar fallen so sharply in recent weeks?

Adani Wilmar, which came out with its IPO just last month, made a stellar debut on bourses more than doubling since listing. However, in the last few days, the stock has been in a vertical fall. For instance, the stock of Adani Wilmar fell for the 8th straight session to on Tuesday to a price level of Rs.583. That shows that the stock has already fallen 34% from its recent high price of Rs.878, which it touched in the aftermath of the listing of the stock. Post IPO rally has been tad too frenetic in a short span of time, even amidst volatile markets.

Apart from tepid numbers, the rally was too sharp post listing. Markets were relatively disappointed by the quarterly numbers due to margin pressures amidst rising raw material costs. Adani Wilmar currently trades in the T2T segment, wherein only delivery of the stock is permitted and intraday trading is not allowed. Adani Wilmar is a joint venture between Adani group and Wilmar of Singapore. In FY22, sales of Adani Wilmar crossed that of Hindustan Unilever, making it the largest FMCG company in India.