Shares of the company, which owns the oil brand Fortune, listed at ₹221 on the BSE, a 3.9% discount to its IPO price. On the NSE, the stock listed at ₹227, a discount of 1%. Soon, the shares rebounded and jumped 20% over the listing price.
Adani Wilmar’s IPO was subscribed 17.4 times, with the company raising ₹3,600 crore through the stake sale. The qualified institutional buyers’ quota was subscribed 5.7 times while the portion set aside for high networth individuals was subscribed 56.3 times. The retail investor category got subscribed a little less than four times and the employee reservation received 50% subscription.
“Adani Wilmar is India’s largest listed FMCG company in terms of product revenue for H1FY22. The IPO was an entirely fresh issue, without any OFS, to fund growth, providing visibility of doubling revenue over next 4-5 years,” said Geetanjali Kedia, senior research analyst at SPTulsian.com.
“The IPO pricing left money on the table, and we find it attractive for a buy even at the present level, after rising post listing,” said Kedia.
Amarjeet Maurya, AVP-Mid Caps at Angel One, recommends booking profit in the stock.
“At the current market price, the stock is trading at 41 times trailing 12-month price to earnings ratio which leaves little room for upside,” said Maurya.
The company is a joint venture between the Adani Group and Singapore’s Wilmar International.
Several brokerages had given a subscribe rating to the IPO citing strong brand recall, wide distribution, financial track record and healthy return on equity.
The company’s profit grew to ₹727.65 crore in FY21, up 58% from the previous financial year while sales rose 25% to ₹37,090 crore.
