New Delhi: The Initial Public Offering (IPO) worth Rs 3600 of Adani Wilmar was subscribed 1.92 times on the final day i.e. on January 31, according to National Stock Exchange Data (NSE).
It garnered bids for 23.46 crore equity shares against an offer size of 12.25 crore units.
Qualified Institutional Investors (QIB) pit in bids for 1.78 times for the portion reserved for them. While on the other hand, the portion set aside for Non-Institutional Investors was booked 1.53 times.
The shares which have been reserved for the company's employees and shareholders, saw a subscription of 33 percent and 1.02 times, respectively.
The Grey Market Premium (GMP) of the company as on January 29,2022 was Rs 45.
Adani Group and Singapore-based Wilmar Group hold a 50:50 percent stake in Adani Wilmar. Interestingly, this is the second IPO of 2022 after AGS Transact Technologies.
The issue price for the Adani Wilmar IPO will be Rs 218-230, while the valuation of the company has been estimated at Rs 26287 crore. The company has reduced the size of its IPO to Rs 3,600 crore, from Rs 4,500 crore earlier.
Adani Wilmar plans to become India's largest food company by 2027. According to the DRHP, the company will pay off its debt from the funds raised through the IPO. Apart from this, the company will use this money for strategic acquisition and investment.
According to DRHP, the company will spend Rs 1900 crore as capital expenditure. Rs 1059 crore will be spent on debt payment, while it will make strategic acquisitions with Rs 450 crore.
If we look at the performance of the company, the consolidated total income of the company was Rs 24957 crore in the September 2021 quarter. In the September 2020 quarter, this amount was Rs 16273 crore. The company's net profit stood at Rs 357 crore in the September quarter as against Rs 288 crore a year ago. The total debt on the company is 9191 crores.
The company that manufactures edible oil fortune Adani Wilmar is a big name in the edible oil segment. Adani Wilmar manufactures edible oil brand Fortune. In the edible oil segment, the brand competes with Nature Fresh, Gemini, Sweekar, Marico's Saffola, Agrotech's Sundrop, Mother Dairy's Dhara, and Emami Group, Patanjali's products.
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