A share price of Rs 230 a share has been fixed for the initial public offering (IPO) of Adani Wilmar, which is the joint venture between Adani Group and Wilmar Group.
The Launch Date & Investors Response
The price is the upper end of the Rs 218-230 price band and the shares will list on the bourses on February 8.
An impressive response from investors was received with the non-institutional investors being at the forefront with bids 56.3 times the allotted quota. The offer saw 17.37 times the subscription and the offer was non-institutional investors.
With the portion being subscribed 33.33 times, the participation from the shareholders too was quite strong. Employees booked 51 percent. Buying shares 5.73 times and 3.92 times the portion set, the issue was also supported by the qualified institutional investors as well as the non-institutional investors.
The market capitalisation of the company, at the upper end of the price band, is valued at Rs 29,898.57 crore.
The Raised Money Shall Be Used In This Way
Through its issue, the FMCG(Fast Moving Consumer Goods) food company raised Rs 3,600 crore. The amount of Rs 3,471.48 crore, which was received after deducting the expenses. Besides the general corporate purpose, this amount shall be utilized for capital expenditure, repaying debts, and strategic acquisitions and investments.
As per IPO Watch and IPO Central, the shares of Adani Wilmar, traded at a premium of Rs 30-35 or 13-15 percent over the final issue price of Rs 230 a share in the grey market. This means that they were traded at a price of Rs 260-265 per share.
Operating a total of 22 plants in 10 states, primary kitchen commodities, including edible oil, wheat flour, rice, pulses and sugar are offered by Adani Wilmar. In the financial year 2021, the branded products of Adani Wilmar accounted for approximately 73 percent of the edible oil and food and FMCG sales volume.
The company’s flagship brand, Fortune, is the largest selling edible oil brand in India.
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