Edible Oil Behemoth Adani Wilmar Has Filed DRHP for an Rs. 4500 Crore IPO

One of India’s largest edible oil producers and distributors, Adani Wilmar, is planning a Dalal Street entry with an IPO of Rs. 4500 crores.

The company, a 50-50 partnership between Wilmar Group and Adani Enterprise, has filed DRHP with market regulator SEBI on 2 August 2021.

Details of this DRHP are yet to be available. However, the company has confirmed that it will only consist of new shares. Therefore, existing shareholders are not offloading their stake in this offering.

Moreover, JP Morgan, ICICI Securities, Credit Suisse, Kotak Mahindra Capital, BofA Securities, BNP Paribas, and HSBC are the merchant bankers to this public issue.

Moving ahead,

Adani Wilmar plans to be the largest FMCG Company in India by the next decade, and this IPO will perhaps be the first step towards that.

If and when this plan realises, it will make Adani Wilmar the 7^th organisation to be listed from Adani’s stable.

Adani Wilmar – The Edible Oil Giant

According to their official website, Adani Wilmar has the largest edible oil distribution network in this country.

They have 85 stock points and 5000 distributors, along with a 10% retail penetration spanning 1.5 million outlets across India.

Additionally, Adani Wilmar operates two refineries in Bangladesh under the banner of Rupchanda.

This joint venture between Adani Group and Singapore-based Wilmer group has 22 units in India. These units together have a refining capacity of 16,800 tonnes per day and a daily seed crushing capacity of 8,800 tonnes.

The edible oil collection of AWL includes –

• Mustard oil
• Sunflower oil
• Soybean oil
• Rice bran oil
• Cottonseed oil
• Groundnut oil

Apart from these, the company has also introduced functional oils like Xpert ProImmunity and Xpert ProSugar Conscious. These oils help build immunity and prevent blood sugar surges.

According to a company executive, more than 60% of their annual revenue comes from the edible oil business. Besides its India market, the company also exports to more than 19 countries in South-East Asia, Middle-East, and East Africa.

The operations of Adani Wilmar are not restricted to only edible oil. The company has also forayed into other segments. It includes basmati rice, maida, atta, sooji, besan, rawa, and various pulses.

Recently it has also launched soya chunks and different ready-to-cook products.

Parting Thoughts

AWL may not be the only company to go public this year from this segment. Gemini Edibles and Golden-Agri Resources are also planning their IPOs. Also, one of Adani Wilmar’s market peers, Ruchi Soya, is hitting the bourses with its follow-on public offer.

Adani Wilmar operates in a highly competitive segment, teeming with companies such as Dhara, Nature fresh, Saffola, Sundrop, and many others. Therefore, it will be interesting to see how the company fares after its debut in the BSE and NSE.

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Frequently Asked Questions

1. What are the objectives of this IPO?

The objectives of this IPO are to meet working capital needs, general corporate purposes, and issue expenses.

2. When is the Adani Wilmar IPO going live?

There is no news regarding the launch of this IPO.

3. What will be the expected price band for Adani Wilmar IPO?

Adani Wilmar has not announced the price band for its IPO.

4. Which is Adani Wilmar’s flagship brand?

Fortune is Adani Wilmar’s flagship brand.