India’s top edible oil maker and well known “fortune” brand owner and one of the top Indian FMCG (Fast Moving Consumer Goods) manufacturer Adani Wilmar is going to be listed on Indian Stock Markets through issue of Rs.3600 Cr. Initial Public Offering (IPO). The IPO is opening for subscription on 27th January 2022. Most of the brokerage firms and financial agencies have given a subscribe ratings to this IPO. Are you interested in it? Here we are providing some basic details of this IPO.
About the Company
Adani Wilmar was formed in 1999 as a 50:50 Joint venture of Adani Group, a well known business group of India and Wilmar Group, one of Asia’s leading agribusiness group and 7th largest listed company on the Singapore Exchange.
Promoters of Adani Wilmar
Adani Enterprises Ltd, Adani Commodities LLP and Lence Pte. Ltd. are the promoters of this company.
Products & Manufacturing facilities of Adani Wilmar
Adani Wilmar is the top manufacturer of edible oil in India, its other products are wheat flour, rice, sugar, packaged foods and other FMCG products.
Adani Wilmar has 22 factories in India including 10 crushing units and 19 refineries across 10 states, strategically located near ports to simplify use of imported crude edible oil and near raw material production bases in order to reduce storage and transportation costs.
It has 5590 distributors across 28 states and 8 union territories in India with 88 depots and serving over 1.6 million retail outlets.
Financials of Adani Wilmar
As on 31st March 2021 its earnings per share (EPS) was Rs.6.37. If we calculate it with its cutoff price i.e. Rs.230 then its PE ratio (Price to earnings ratio) will be 36, which is less than the FMCG sector PE that is 45 and less than the PE ratio of its major listed competitors like Hindustan Uniliver (PE– 68) and Ruchi Soya (PE- 36). Here are few details of its past three year’s financials.
| (All figures are in Million Rs.) | FY-21 (as on 31st March 2021) | FY-20 (as on 31st March 2020) | FY-19 (as on 31st March 2019) |
| Total Income | 371956 | 297669 | 289196 |
| Total Expenses | 364390 | 291579 | 283524 |
| Profit Before Tax (PBT) | 7566 | 6090 | 5672 |
| Net Profit After Tax (NPAT) | 7274 | 4596 | 3746 |
| Earnings Per Share (EPS) | 6.37 | 4.03 | 3.29 |
Details of Adani Wilmar IPO issue
The IPO consists of a fresh issue of 12.08% of shares worth Rs.3600 crore and does not consist of offer for sale. It has already raised Rs.940 Cr. from anchor investors. After this public issue the promoter’s shareholding in the company will be 87.92%. The promoters have to offload minimum another 12.92% of share within the next 3 years in order to comply with the SEBI’s guideline for public listed companies to issue minimum 25% of shares to public.
Out of the Rs.3600 Cr. total issue
Rs.107 cr. worth shares are reserved for its eligible employees with a discount of Rs.21 per share.
Rs.360 cr. Worth shares are reserved for the share holders of Adani Enterprises Ltd who holds its shares as on the date of filing of DRHP to SEBI i.e.19 January 2022.
Not less than 35% quota of the IPO is reserved for retail investors (applying for less than or equal to Rs.200,000/- or 13 lots of shares that is equal to Rs.1,94,350/-)
Not less than 15% of the subscription is reserved for Non Institutional Investors (NIIs) or High Net worth Investors (HNIs) who applies for more than Rs.2,00,000/- or 13 lots of shares.
Not more than 50% of the total issue is reserved for Qualified Institutional Buyers (QIBs).
| IPO Issue size | 3600 Cr. |
| Reserved for Employees | 107 Cr. |
| Reserved for Shareholders of Adani Enterprises | 360 Cr. |
| Record date for shareholder’s quota | 19th January 2022 |
| Retail Investor Quota | Not less than 35% of total issue |
| Non Institutional Investor (NII or HNI) Quota | Not less than 15% of total issue |
| Qualified Institutional Buyers (QIB) Quota | Not more than 50% of total issue |
Objects of the Adani Wilmar IPO
1058.90 Cr. out of the fund raised through this IPO will be utilized for repayment of outstanding borrowings.
1900 Cr. out of the fund raised will be utilized for funding working capital requirements.
Rs.450 Cr. out of the fund raised will be utilized for strategic acquisitions and investment purposes.
Other part of the out of the fund raised through this IPO will be utilized for general corporate purposes.
Dateline & Price band of Adani Wilmar IPO
| IPO issue type | Book building issue |
| IPO price band | Rs.218 to Rs.230 per share |
| Face value of share | Rs.1 per share |
| IPO Lot size | 65 shares |
| Per lot price | Rs.14950. |
| IPO Opening date | 27th January 2022 |
| IPO Closing date | 31st January 2022 |
| Date of allotment | 3rd February 2022 |
| Refund if shares not allotted | 4th February 2022 |
| Credit of shares to demat account | 7th February 2022 |
| Listing of shares on BSE & NSE | 8th February 2022 |
IPO will be issued through book building process and the Price band per share will be from Rs.218 to Rs.230. Hence you can bid for any price between 218 to 230. But as most of the IPOs are being oversubscribed, all bidders apply on the cutoff price only (Rs.230 per share for this IPO) for more chance of getting allotment.
Face value of each share will be Rs.1.
Minimum Lot size for apply is 65 shares. So if you apply for minimum one lot then the required amount will be Rs.14950. (based on the cutoff price Rs.230. X 65 shares).
The IPO will be opened for subscription on 27th January 2022 and will be closed on 31st January 2022. You can apply from any of the broker’s platform you use. Having a demat account is compulsory in order to apply for an IPO, because without a demat account you couldn’t hold shares if you get the allotment. If you don’t have a demat account then you can open an account easily within 15 minutes, click here to open an account with any of the top discount brokers of India i.e. Zerodha / Upstox. Check this article to know how to open a demat account.
The shares will be allotted to successful and lucky bidders on 3rd February 2022. As you know most of the IPOs are being oversubscribed hence shares are allotted on lucky draw basis. So in order to increase your chance to get the allotment, you can apply from multiple demat accounts but all the accounts should be on separate PAN card, hence don’t apply from multiple broker accounts in your name, otherwise your application will be rejected. Rather you can open demat accounts in the name of your friends and family members and apply for one lot each from all the accounts.
If you don’t get any allotment the fund will be refunded or the amount blocked in your bank account at the time of applying the IPO will be unblocked by 4th February 2022. You can check your allotment status by visiting the website of the registrar of this IPO issue Link Intime India Pvt. Ltd.
Shares will be credited to your demat account (if you got any allotment) by 7th February 2022 (expected) and the Shares of Adani Wilmar are expected to be listed on both the exchanges i.e. BSE & NSE on 8th February 2022 at 10.AM.
The Gray Market Premium (GMP) for the public issue is currently at Rs.45 per share that is 19% and may change as the market sentiment changes. That is all about this IPO. For more articles related to stock market and investments you can check our articles. Thanks for visiting our site.
