adani wilmar: Adani Wilmar IPO to open on Jan 27 at Rs 218-230 per share

Mumbai: The ₹3,600-crore initial public offering of Adani Wilmar will open for subscription on January 27. The company, which owns the edible oil brand Fortune, has set the price band of its public issue at ₹218-230 per share. The issue will close on January 31.

The company, a joint venture between Adani Group and Singapore’s Wilmar, had earlier planned a ₹4,500-crore IPO.

Now, the issue size has been cut to ₹3,600 crore. Out of the IPO proceeds, Adani Wilmar will use ₹1,900 crore on capital expenditure, ₹1,059 crore to repay debt, and ₹450 crore to fund acquisitions and investments.

The company posted consolidated revenue of ₹37,090 crore for the year ended March 31, 2021, as against ₹29,657 crore a year ago. Net profit for FY21 stood at ₹728 crore as against ₹461 crore a year ago.

The company’s portfolio of products spans three categories including edible oil, packaged food, and industry essentials.

The issue comprises a fresh share issue aggregating up to ₹3,600 crore by the company. Promoters and existing shareholders are not offloading their stakes in the IPO. Investors can bid for a minimum of 65 shares and multiples of 65 thereafter.

In the issue, 50% will be reserved for qualified institutional buyers (QIBs). Non-institutional buyers will have 15% of the share issue. The retail portion will get up to 35% of the offer.

Kotak Mahindra Capital, JP Morgan India, BofA Securities India, Credit Suisse Securities (India), ICICI Securities, HDFC Bank, and BNP Paribas are lead managers to the issue.