Leading FMCG food firm, Adani Wilmar, makes a quiet debut on Tuesday, 8 February 2022─ listing the stocks with a 4% discount on the issue price prior to stepping up 7%. Keep scrolling to know the details!
Get an Insight into the Stock Listing of Adani Wilmar!
On Tuesday, 8 February 2022, the stock of this firm unfolded at Rs. 227 on the National Stock Exchange and Rs. 221 on the Bombay Stock Exchange, with Rs. 230 as the issue price. Adani Wilmar’s public issue, worth Rs. 3,600 crores was subscribed nearly 17.37 times from 27 January 2022 to 31 January 2022 ─ establishing an impressive response from investors.
The proportion kept aside for shareholders and non-institutional investors were subscribed 33.33 times and 56.30 times respectively. On the other hand, the allotted quota for qualified institutional purchasers and retail investors booked 5.73 times and 3.92 times, respectively.
Know About the Business of Adani Wilmar
Adani Wilmar, a joint venture between the Wilmar Group and the Adani Group, offers a variety of packaged foods such as sugar, ready-to-cook khichdi, soya chunks, besan, pulses, rice, wheat flour and edible oil. Its flagship brand, Fortune, is India’s biggest selling oil brand.
The entity also facilitates personal hygiene products such as de-oiled cakes, castor oil, oleochemicals, sanitisers, handwash and soaps. 23% of the total expenditure on food & grocery (worth Rs. 39.45 lakh crores) was spent on essential kitchen products. This demonstrates a Rs. 9 lakh crores opportunity size for any company in the essential kitchen product sectors.
With respect to Adani Wilmar’s valuations, the post-issue Trailing Twelve Months P/E turns down to 37.6x (at the issue price bracket’s upper end), which is fair enough considering its historical bottomline and topline CAGR of about 39% and 13%, respectively, over the fiscal years 2019-21.
Furthermore, the company has reasonable returns on equity, a healthy financial record, wide distribution and strong brand recall. Its brand extension caters to various target markets, and the valuation is at satisfactory levels.
Frequently Asked Questions
1. How much did Adani Wilmar’s net profit grow in FY 21?
Adani Wilmar’s consolidated net profit stood at Rs. 727.65 crores in FY 21, marking a growth of 58% from the preceding financial year.
2. How much did Adani Wilmar’s revenue rise in FY 21?
The revenue of Adani Wilmar in FY 21 is Rs. 37,090.42 crores, establishing a hike of 25% from FY 20.
3. Who is the CEO of Adani Wilmar Ltd.?
Mr. Angshu Mallick is the CEO of Adani Wilmar Ltd. Before joining this company, he was working with NDDB (National Dairy Development Board).
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.