Home Tech Adani Wilmar IPO opens tomorrow – Should you subscribe?

Adani Wilmar IPO opens tomorrow – Should you subscribe?


Adani Wilmar IPO: Adani Wilmar Ltd, fused in 1999 as a joint endeavor between Adani Group and Wilmar Group of Singapore, is a FMCG organization offering kitchen wares for Indian shoppers including eatable oil, wheat flour, rice, heartbeats, and sugar.

The items can be ordered into three cans: palatable oil, bundled food and FMCG, and industry fundamentals. Adani Wilmar markets its eatable oil under its lead image Fortune which is the biggest selling consumable oil brand in India.

Adani Wilmar will drift its Rs 3,600 crore first sale of stock (IPO) on January 27 and close it on January 31.

About the IPO

The Rs 3,600 crore IPO involves only a fresh issuance of about 15.65 crore shares and does not include offer for sale.

The offers will be presented at Rs 218-230 each. Financial backers can offer for a base 65 offers and in products of 65 from there on. Retail financial backers can put at least Rs 14,950 out of one part and their greatest venture can be Rs 194,350 for 13 parcels.

The advertiser shareholding will descend from 100% to 87.92 percent after the public issue.

The designation of offers will be chosen by February 3, ineffective financial backers will get discounts by February 4 and fruitful bidders will get shares credited to their demat accounts by February 7.

The portions of Adani Wilmar will list on BSE and the National Stock Exchange on February 8.

The organization will use the returns from the IPO for financing capital use; reimbursement/prepayment of borrowings; subsidizing key acquisitions and speculations; and for general corporate purposes.

Further, Adani Wilmar has strong brand recall, wide distribution, better financial track record and healthy ROE (return on equity). “Considering all positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a subscribe rating on the issue,” advised the brokerage in its report.

Marwadi Financial Services said in its report: “Considering the TTM (September 2021) EPS of Rs 6.12 on a post-issue basis, the company is going to list at a P/E of 37.56x with a market cap of Rs 29,898.6 crore whereas its peers Nestle and Britannia Industries are trading at PE of 81.6x and 54.7x”. It assigns a subscribe rating to this IPO as the company is available at a reasonable valuation compared to its peers.