Adani Wilmar IPO: After allocation of shares, all eyes are now set on Adani Wilmar IPO listing, which is most likely on February 8, 2022. Adani Wilmar, which sells its cooking oils and other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar. Apart from cooking oils, Adani Wilmar sells food products like rice, wheat flour and sugar. It also sells non-food products like soap, handwash and sanitisers. Post-IPO, the public shareholding will be 12 per cent and the remaining 88 per cent will be equally held by the two promoters.
Adani Wilmar IPO: Subscription
It saw a 17.37 times subscription as non-institutional investors were at the forefront with bids 56.3 times the allotted quota. The participation from shareholders, too, was strong as their portion was subscribed 33.33 times and that of employees was booked 51 per cent. Qualified institutional investors and non-institutional investors also supported the issue, buying shares 5.73 times and 3.92 times the portion set aside for them, respectively.
Adani Wilmar IPO: Fundamentals
Speaking on the fundamentals in regard to Adani Wilmar IPO; Aprajita Saxena, Research Analyst at Trustline Securities said, “Adani Wilmar enjoys a leadership position in branded edible oil and packaged food business. It has strong brand recall and broad customer reach coupled with a diversified products portfolio and market leading brands. It is largest oleochemical manufacturers in India with Pan India network and robust distribution infrastructure. Demographic change, increase in e-commerce reach, increasing household consumption and supportive government policies are the strong tailwinds of the company.”
Adani Wilmar IPO: GMP
As Adani Wilmar IPO GMP is Rs 28, it means grey market is expecting this public issue to list at around Rs 258 ( Rs 230 + Rs 28), which is around 13 per cent higher from the price band of Rs 218 to Rs 230. However, secondary market experts said that GMP is not an ideal indicator about the expected listing fain as it has nothing to do with the balance sheet of the company.
Adani Wilmar IPO: Listing Predictions
Abhay Doshi, Founder at UnlistedArena.com said, “Adani Wilmar IPO got moderate response from bidders due to the negative sentiment in the secondary markets. However, fundamentals of the company suggest that one can expect up to 15 per cent listing gain from the public issue.”
“From fundamental perspective, Adani Wilmar is a quality company as its FMCG products are easily available at majority of the retail FMCG outlet. Apart from this, its products are one of the market leaders; however, current market mood is dampener as there has been heavy selloff on last two trade sessions. So, I am expecting this public issue to list in the range of Rs 250 to Rs 260, delivering around 10 per cent discount to its lucky bidders,” said Anuj Gupta, Vice President at IIFL Securities.
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