The shares of Adani Wilmar recovered after making a weak debut today on the stock exchanges. The stock listed at ₹221 on BSE, a discount of 3.9 percent from its issue price of 230. On NSE, the stock listed at 227, down 1.3 percent from the issue price.
However, post listing, the stock recovered, at 10:02 am the stock was trading 6.7 percent higher at ₹245.55 on BSE.
The IPO of Adani Wilmar, which was a 50:50 joint venture between the Adani Group and Singapore's Wilmar Group was open for subscription between January 27 and January 31. It was subscribed more than 17 times during this period.
The ₹3,600 crore-IPO had fixed a price band of ₹218-230 per share for the IPO. The firm sells its cooking oils and other food products under the Fortune brand. The firm's product portfolio is spread across three categories, - 1) Edible Oil, 2) Packaged food & FMCG – like wheat flour, rice, pulses, and sugar 3) Industry essentials.
Post-IPO, the public shareholding will be 12 percent and the remaining 88 percent will be equally held by the two promoters.
The public issue comprised of only a fresh issue of 15.65 crore equity shares and no offer for sale. The IPO proceeds will be used for capital expenditure, repayment of debt and funding strategic acquisitions and investments.
A majority of analysts expected the stock to list in a range of 15 percent to 20 percent premium to the issue price. The brokerages were very bullish on the IPO and unanimously gave a subscribe rating to the issue as the company on the back of its leadership in the edible oil industry in India as well as strong earnings.
Ahead of the IPO, the firm had raised ₹940 crore from anchor investors, allocating shares at ₹230 apiece.
