Adani Wilmar IPO Deep Analysis Explain & Review 2022

Adani Wilmar IPO is returning to the market after a gap of 12 years. The last IPO from the Adani group was in July 2009, when each share sold for a price of Rs.100, mobilizing Rs. 3016.92 cr.

This time the company is highlighting its FMCG arm Adani Wilmar Ltd. In August 2021 the company had filed its DRHP for Rs. 4500 cr. maiden float.

But this month it’s entering the capital market with a fresh figure of Rs. 3600 cr. The size of its IPO is reduced by Rs. 900 cr. (20%) according to the permissible limits.

The latest distress in the broader markets has heavily affected the primary markets, causing the grey market premiums to erode sharply for debutants.

Hence, the premium for Adani Wilmar has halved under the influence of recent market correction. Adani Wilmar is a joint venture established by Gautam Adani Group and Singapore’s Wilmar Group.

Adani Wilmar IPO GMP is set at Rs 45-50, which is calculated as 20% on the higher price range in the grey market (which was around Rs. 100 earlier). Currently, the price range of the shares is operating between Rs. 218-230.

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Adani Wilmar IPO Date

Adani Wilmar will open its IPO for subscription from 27th January and will close on 31st January 2022.

This IPO becomes the 7th Adani Group company to be listed in India. The company is aiming to raise Rs. 3600 crores via OFS.

The retail quota is set at 35%, QIB 50%, and NII 15%. The Employees Reservation is kept around Rs. 107 cr. and Shareholders Reservation (Adani Enterprise) is around Rs. 360 crs. Do not miss out on the Adani Wilmar IPO date.

Adani Wilmar IPO Review

Let’s understand the Food Industry overview before getting into Adani Wilmar IPO Review. The market of retail packaged food in India is estimated to be Rs. 6,00,000 cr in FY 2020.

This is only 15% of the total food and grocery retail market which is estimated to be Rs.39,45,000 cr in FY 2020.

India is a very large importer of edible oil. We single-handedly import 46% of the total export of crude palm oil all over the world.

That is not it, India also imports 19% of crude sunflower oil, 30% of crude soybean oil, and 8.6% of palm oil and its fractions. This category is expected to quickly gain a market share of 17% by FY 2025.

The estimation for the edible oil retail market was set at approx Rs. 1,79,500 cr in FY 2020. Analysts are expecting the number to grow at a CAGR of 6% in the coming 5 years.

Also, remember that nearly 75% of the edible oil (in terms of volume) is retailed in India as a branded product.

India is the largest producer of castor seeds and forms 85% of the total global castor-oil seeds production. The 2nd largest is China and the 3rd is Brazil.

You can expect the castor oil production to increase at a CAGR of 7% in the upcoming 5 years.

Strength of Adani Wilmar IPO

• Adani Wilmar Group is one of the largest FMCG food companies in India that offers most of the essential kitchen items to Indian households.
• The business is long-standing and has an extensive network which makes the sourcing of raw materials very cheap.
• They have designed an integrated business model with a well-established operational infrastructure and very strong in-house manufacturing capabilities.
• Their products have become a household name making their presence very strong PAN -India. They have 5,566 distributors serving 1.6 million retail outlets, which contributes to approximately 35% of the retail outlets in India.
• The company is known for its environmental and social sustainability measures which contribute to the value of the brand. 97% of their packing materials are recyclable and five of their plants have solar power implementation.

Weaknesses of Adani Wilmar IPO

It is important to note weaknesses as well while studying the Adani Wilmar IPO review.

• A very significant portion of their revenue comes from the edible oil business. So if the demand or production in this segment decreases, it will have an adverse effect on the company.
• As it is a food, edible oil, and FMCG company, the business is dependent on weather conditions such as floods, natural disasters, droughts, etc.
• The brand is known for high-quality raw materials. Any kind of changes in price or disturbance in the supply chain can make the business go down.
• If there are any fluctuations in the price of commodities, be it domestic or global, the earnings of the company will be affected.
• The company is vulnerable to international laws and regulations as it deals in the import and export of products.

Adani Wilmar IPO Grey Market Premium

According to market observers, Adani Wilmar IPO GMP today is ₹30, which is ₹2 higher from its yesterday’s grey market premium of ₹28.

As Adani Wilmar IPO GMP today is ₹30, it means grey market is expecting Adani Wilmar shares to list around ₹260 ( ₹230 + ₹30), which is around 13 per cent higher from its price band of ₹2818 to ₹230 per equity share.

Adani Wilmar Company Promoters and Owners

Let’s check out the Adani Wilmar Company Promoters and Owners.

Adani Wilmar Ltd. was incorporated in 1999 as a joint venture between the Adani Group, which is a diversified multinational business group dealing in transport, energy, logistics and utility sector, and the Wilmar Group, one of the leading agribusiness groups in Asia which ranked 7th largest listed companies by market capitalization on Singapore exchange held on September 30 2021.

Coming to the important Adani Wilmar Company Promoters and Owners:

Promoters: Adani Enterprises Limited, Adani Commodities LLP, and Lence Pte Ltd.

Global Co-ordinators Book Running Lead Managers:  Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, BofA Securities India Limited, and Credit Suisse Securities (India) Private Limited.

Book Running Lead Managers: ICICI Securities Limited, HDFC Bank Limited, and BNP Paribas.

Registrar to the issue: Link Intime India Private Limited.

Adani Wilmar IPO GMP

IPO of the company is expected to gain good traction because currently, the Adani Wilmar IPO GMP (Grey Market Premium) is at 13%, which means Rs. 30 per share from the Adani Wilmar IPO price.

Adani Wilmar IPO Price

Adani Wilmar IPO price has been fixed at Rs. 218-230 per share for this three-day initial public offering (IPO) through which it is aiming to raise up to Rs. 3,600 crore.

Adani Wilmar IPO Details

Adani Wilmar IPO Details are listed below to give you a fair idea.

• IPO Size-  Rs 3600.00 Cr
• Fresh Issue- Rs 3600.00 Cr
• Offer for Sale (OFS)-   0
• Opening date- January 27, 2022
• Closing date-   January 31, 2022
• Face Value-  ₹1 per equity share
• Price Band-  ₹218 to ₹230 per equity share
• Lot Size-       65 Shares
• Minimum Lot Size- 1
• Maximum Lot Size-  13
• Listing Date- February 8, 2022
• Listing On – BSE & NSE
• Discount – Rs. 21 for Employees

Adani Wilmar GMP Live Today

As mentioned above, Adani Wilmar GMP live today is operating at 13% meaning Rs. 30 per share from the IPO price. The retail quota is 35%, QIB 50% and HNI 15%.

The Adani Wilmar IPO latest news reflects that the Adani group has become an attractive bet because of its strong parentage.

It as still able to keep positive premium in the unofficial market. Follow this space for more on the Adani Wilmar IPO latest news and updates.

Adani Wilmar IPO Valuation

The Adani Wilmar IPO Valuation is set at Rs. 3,600 crore, which involves a fresh issuance of about Rs. 15.65 crore shares and this is without an offer for sale. Each investor can bid for a minimum of 65 shares and in multiples of 65 after that.

Retail investors are given the opportunity to invest a minimum of Rs. 14,950 in one lot and a maximum of Rs. 194,350 for 13 lots.

Final Words

Adani Wilmar IPO will open on January 27, 2022 and close on January 31, 2022. Investors can find a good opportunity to apply for the IPO after reviewing the strengths and weaknesses of the company.