Adani Wilmar sets Rs 218-230 as price band for its public issue

Gautam Adani, the chairman of Adani Group

Adani Wilmar Ltd, the equal joint venture between Adani Enterprises Ltd and Wilmar International Ltd, and the owner of the Fortune brand of edible oils,  has set the price band for its public issue at Rs 218-230 per share, valuing the company at Rs26,287.82 crore.

Moneycontrol was the first to report that the IPO will open on January 27 for subscription and close on January 31. It plans to go listed on February 8 on exchanges. The firm has cut its IPO size to Rs 3,600 crore from Rs 4,500 crore earlier.

The proceeds from the issue worth Rs 1,900 crore will be used for capital expenditure, Rs 1,058.90 crore for repayment of debt and Rs 450 crore will be used for funding strategic acquisition and investment.

Kotak Mahindra Capital, JP Morgan India, BofA Securities India, Credit Suisse Securities India, ICICI Securities, HDFC Bank and BNP Paribas are the lead managers to the issue.

For the period ended September 2021, the firm reported a consolidated total income of Rs 24,957.29 crore as against Rs 16,273,73 crore a year ago. Net profit for the period stood at Rs 357.13 crore versus Rs 288.79 crore last year. As of September 2021, the aggregate outstanding borrowings of the firm (on consolidated level) was at Rs 9,191.55 crore.

As of March 2021, the market share of its edible oil stood at 18.3 percent, making Fortune the No 1 edible oil brand in India. The flagship brand is the largest selling edible oil brand in India. The firm has also leveraged its brands and distribution network to offer a wide array of packaged foods since 2013, including packaged wheat flour, rice, pulses, besan, sugar, soya chunks and ready-to-cook khichdi.

The company has 22 plants strategically located across 10 states in India, comprising 10 crushing units and 19 refineries. Out of the 19 refineries, 10 are port-based to facilitate the use of imported crude edible oil and reduce transportation costs, while the remaining are typically located in the hinterland in proximity to raw material production bases to reduce storage costs. Its refinery in Mundra is the one of the largest single location refineries in India with a designed capacity of 5,000 MT per day.

In addition, as of September 30, 2021, it had 36 tolling units across India to cater to the excess demand and ensure its presence across different parts of the country, which produce mustard oil, rice bran oil, wheat flour, rice, pulses, sugar, soya chunks and khichdi with raw materials it provide.