Adani Wilmar shares crash 9% as promoter looks to sell up to 20% stake via OFS

Over the past three days, Adani Wilmar’s shares have dropped more than 11 percent

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Shares of Adani Wilmar extended their losing streak for the third consecutive day, falling 9.5 percent to Rs 292 apiece on January 10, as promoter Adani Commodities launched a two-day offer-for-sale (OFS) for non-retail investors. The sale for retail investors is set to begin on January 13.

Adani Commodities plans to sell 17 crore shares in Adani Wilmar, which accounts for 13.5 percent of the company’s total issued and paid-up equity share capital. Additionally, the OFS includes an oversubscription option, allowing the sale of another 8.4 crore shares, or 6.5 percent of the company. The OFS price is set at Rs 275 per share, which represents a 6 percent discount to the day’s lowest price.

Late last month, Adani Enterprises, the flagship entity of the Adani Group, announced its decision to exit its joint venture stake in Adani Wilmar. As part of this plan, the company intends to sell a 13 percent stake to meet minimum public shareholding requirements, while Wilmar International, the other promoter of Adani Wilmar, will acquire the remaining 31 percent stake.

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Ventura Securities recently stated that the strategic sale of Adani Wilmar is set to improve Adani Enterprises' liquidity. The proceeds, which could be leveraged for twice the debt, would enable Adani Enterprises to raise additional debt of Rs 35,000 to Rs 36,000 crore, creating a substantial Rs 50,000 to Rs 52,000 crore fund.

"At a portfolio level, the Adani Group's equity deployed as a percentage of overall assets currently stands at 63 percent and is expected to increase further following this transaction. This highlights the group's consistent focus on maintaining a healthy capital structure and robust capital management," the report noted.

Over the past three days, Adani Wilmar’s shares have dropped more than 11 percent, compared to a 1 percent decline in the benchmark Nifty 50 index. Earlier, Adani Wilmar had hit a 52-week low of Rs 279 per share on November 22, 2024.

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