ADANI WILMAR IPO
Adani Wilmar IPO will open for subscription on 27th Jan 2022 and will close as on 31st January 2022. Price band for this IPO has been fixed at Rs. 218 to Rs. 230 per share and the company is looking forward to raising a sum of Rs. 3,600 Cr from this public issue. Adani Wilmar shares are going to list both at BSE as well as NSE. According to the observation in the grey market, as of today the share is trading at a premium of Rs 65.
So this was a brief about the IPO. But what does the company do? What are the financials? And should you actually invest in the IPO?
Let us discuss the same in this article and help you make a better and informed decision!
IMPORTANT DETAILS
1. IPO Dates:
The public issue will open on 27th Jan and will remain open for bids till 31st Jan.
2. Price Band:
The management has fixed the price band at Rs 218 to Rs 230 for one equity share
3. Lot size:
Retail investors will be able to bif in lots and one lot comprises 65 equity shares of Adani Wilmar.
4. Size of the IPO:
The management of the company is looking forward to raise Rs 3,600 Cr from its public issue.
5. Application limit:
An investor can go forward with applying for minimum one to maximum thirteen lots.
6. IPO Allotment announcement:
The tentative date for allocation will be 3rd Feb and initiation of refunds are expected to commence from 4th Feb. The shares will be credited in the demat by 7th Feb.
7. Listing date:
The tentative date for listing will be 8th Feb 2022.
ABOUT THE BUSINESS
Adani Wilmar is a JV (Joint Venture) amongst Global Wilmar Group and Adani Enterprises. It is one of the few huge FMCG food entities in the nation. Its portfolio spans across 3 categories which are FMCG, Industry essentials, Edible oil and packaged food.
It provides essential kitchen requirements like wheat flour, edible oil, pulses, sugar, rice among others. Also, it offers a wide range of industry essentials and cakes. Its largest selling edible oil brand “Fortune” is well recognised across the nation. It aims to launch rice bran health oil, edible oil products, soya chunks among others as a part of their future strategy and plan.
The company has 22 manufacturing units in 10 different states of the country including 18 refineries and 10 crushing units. Its mundra refinery is the largest single location refinery in the nation.
OBJECTIVE OF THE ISSUE
The issue of this IPO is to mobiles the process from the issue in:
- Payment of borrowings of Rs 1,059 Cr
- Capital expenditure of around Rs. 1,900 Cr
- Funding of strategic investments and acquisition amounting to Rs 450 Cr
- General corporate purpose
FINANCIALS
The company reported a growth in revenue of around 13.5% to Rs 37,090 Crs in FY21. Its EBITDA frew at a 8.2% CAGR to Rs 1,325 Crs during the period. Its Profit After Tax (PAT) grew at 39.2% to Rs 728 Crs. EBITDA margin decreased by over 40 basis points to 3.6% due to higher input costs. But it's PAT margin expanded by 70 basis points to 2%.
Below are some more figures for better understanding.
| Particulars (All in INR) | 31st March’21 | 31st March’20 |
| Total Assets (In Lacs) | 13,32,663.9 | 11,78,591.7 |
| Total Revenue (In Lacs) | 37,19,565.8 | 29,76,698.6 |
| Profit After Tax (In Lacs) | 72,764.9 | 46,087.2 |
GREY MARKET PREMIUM
The Adani Wilmar shares are trading at a GMP of Rs 50 to Rs 70 ahead of its IPO indication that the grey market is expecting the issue to list at around Rs. 280 per share from the upper end of the band. The GMP of the share declined from the highs of Rs 170 to Rs 50 in a few sessions. But still investors can look for this IPO to get a decent listing gain but the market sentiment and scenario will play a major role.
DISCLAIMER
ZFunds in no way trying to give any tip or advice or suggestion to invest in any stock or issue. This article is only for knowledge purposes as we believe in investor education and protection. Do your needful research before investing your funds in any investment alternative. For world class assistance, you can get in touch with our experts at ZFunds.