Adani Wilmar initial public offering (IPO) saw a tepid response from investors on day one. This was the second IPO of 2022, after AGS Transact Technologies public issue. Adani Wilmar is a fast-moving consumer goods (FMCG) company known for edible oil ‘Fortune’. Adani Wilmar IPO is a complete fresh issue of equity shares of Rs 3,600 crore and no existing promoters or shareholders will be selling any shares. The edible oil major on Tuesday said it has garnered Rs 940 crore from anchor investors.
Adani Wilmar IPO comprises a fresh issue of new equity shares of face value Re 1 for an amount of up to Rs 3,600 crore, the filing said. Promoters and existing shareholders are not offloading their stake via OFS in the issue.
Adani Wilmar IPO: Subscription Status
Adani Wilmar IPO was subscribed 100 per cent by 1430 hours on January 28, the second day of bidding. Retail investors continue to provide strong support, as the portion set aside for them was subscribed 1.66 times. Qualified institutional buyers and non-institutional investors had subscribed 30 per cent and 81 per cent, respectively, of the portions set aside for them.
Adani Wilmar has been mostly resilient to the fallouts from the Covid pandemic. Despite a dip in the EBITDA margin from 4.4 per cent in FY20 to 3.6 per cent in FY21, the company reported a 62 per cent YoY jump in PAT at Rs 6.6 billion, led by the saving in interest cost, which also helped to improve the net margin to 1.8 per cent in FY21, from 1.4 per cent in FY20. Debt-to-equity improved from 0.9x in FY20 to 0.6x in FY21. For 1HFY22, its revenue jumped by 54 per cent YoY to Rs 248 billion, with an EBITDA of Rs 8 billion (up 23 per cent YoY) and PAT of Rs 3.3 billion (up 36 per cent YoY), Reliance Securities noted.
Adani Wilmar IPO GMP on January 28
Shares of the company are currently commanding a grey market premium (GMP) of 25 per cent, which is Rs 50 per share from the IPO price.
Adani Wilmar IPO: Should you Subscribe?
“The company has differentiated and diversified product portfolio with market-leading brands. Also, the company is one of India’s leading consumer product companies with leadership in edible oil and packaged food business along with strong raw material sourcing capabilities & integrated business model with well-established operational infrastructure and strong manufacturing capabilities,” Hem Securities said.
The brokerage has assigned a “subscribe” rating to the public issue.
The company has cemented its market leadership in the edible oil industry in India and has consistently been churning profits since FY19, said Arihant Capital with a recommendation to ‘subscribe’ to the issue.
“The company has a promising growth trajectory enforced by its capable management and constant product innovation,” the brokerage firm added.
Kotak Mahindra Capital, JP Morgan India, BofA Securities India, Credit Suisse Securities (India), ICICI Securities, HDFC Bank and BNP Paribas are the book running lead managers to the issue. Link Intime India has been appointed as registrar to the IPO. The equity shares of the company will be listed on both BSE and NSE.
Read all the Latest Business News here
Comments
0 comment