Adani Wilmar Declared As Asia’s Best Performing IPO! Investors Get 200% Profits From Wilmar Shares
When it comes to the Asia’s newly listed stocks, there is one stock which is making waves like no other. It is the India’s Adani Wilmar Ltd!
While most of the newcomers are trading under water, this food company is making strides and being an outlier, it has almost tripled since its inception.
It is a joint venture between the Adani group and Singapore’s Wilmar International Ltd. Shares of this venture have outperformed 121 Asian initial public offerings worth over $100 million this year.
Due to the rising interest rates as well as Russia Ukraine conflict, almost two-thirds of the region’s new listings are in the red.
The Monetary Authority of Singapore and Nippon Life India were among investors in Adani Wilmar’s IPO.
Adani Wilmar : Feather In the Adani’s Cap
Adani Wilmar makes Fortune brand cooking oils, wheat flour, rice, pulses, sugar and other food products.
The company said that it plans to use part of the funds in the $486 million in order to expand the facilities, repay the loans as well as make strategic acquisitions.
Vikrant Kashyap, an analyst at KR Choksey said that the market share gain can be attributed to the strong distribution network, diversified product portfolio, market leadership in key categories, focus on rural market, new product launches and strong parentage.
After years of focus on coal and infrastructure-related plays, Adani is expanding his reach and is one of Asia’s busiest dealmakers.
After he capped a run of some 32 acquisitions in the past year, tycoon’s move to diversify into new areas like data centers and digital services has paid off.
Kashyap wrote in a note this month that the JV gets “significant benefit” from its parents. He said that the JV has paid off debt with funds from the IPO and recommended the stock as accumulate.
He added that expected acquisitions will lead to a gain in market share. The company has recently purchased the Kohinoor cooking brand for the India region.
Other Adani Stocks
Other stocks linked to Adani have also done well. Adani Power Ltd., up more than 200% this year, is the top performer among members of the S&P BSE 500 index. Adani Green Energy Ltd., up 65% year-to-date, is the fifth-best performer even as the firm has no analyst coverage.