The initial public offering of Adani Wilmar, best known for 'Fortune' brand of cooking oils, has subscribed 1.13 times on January 28, the second day of bidding.
Bids for 13.82 crore equity shares had come in against the offer size of 12.25 crore units of the Rs 3,600-crore issue that closes January 31, 2022.
Retail investors continue to provide strong support, as the portion set aside for them was subscribed 1.85 times. Employees had bid for 18 percent of their quota of shares, while shareholders’ potion was subscribed 85 percent.
Qualified institutional buyers and non-institutional investors had subscribed 39 percent and 88 percent, respectively, of the portions set aside for them.
It is a fresh issue so the company will utilise the proceeds for the expansion of manufacturing facilities, developing of new units, repaying debt and for strategic acquisitions and investments.
The price band for the offer that opened on January 27 has been fixed at Rs 218-230 a share.
Adani Wilmar is one of the few large FMCG companies in India that offers most of the primary kitchen commodities like edible oil, wheat flour, rice, pulses and sugar.
“The company has differentiated and diversified product portfolio with market-leading brands. Also, the company is one of India's leading consumer product companies with leadership in edible oil and packaged food business along with strong raw material sourcing capabilities & integrated business model with well-established operational infrastructure and strong manufacturing capabilities," Hem Securities said.
The brokerage has assigned a “subscribe” rating to the public issue.