Adani Wilmar IPO opens Jan 27: Here’s price band, lot size and more

The IPO only comprises fresh issue of equity shares and there will not be any secondary offering. The proceeds from the offer will be used for capital expenditure, repayment/prepayment of debt, funding strategic acquisitions and investments and general corporate purposes.

Adani Wilmar is among the leading food fast-moving consumer goods (FMCG) companies in the country with revenues of Rs 37,196 crore in financial year 2020-21 (FY21). It intends to grow its geographical presence in the edible oil sector and expand the food staples business, FMCG and also value added food products.

“we may pursue acquisitions in the edible oil and food industry to strengthen our presence in the southern regions where regional companies are strong. We intend to consolidate market share through acquisitions of regional players,” the company wrote in its red herring prospectus (RHP).

Investors who wish to subscribe to Adani Wilmar’s IPO can bid in the lot of 65 equity shares and multiples thereof. At the upper price band, they will have to shell out Rs 14,950 to get a single lot of Adani Wilmar. The shares will be listed on both BSE and the National Stock Exchange (NSE).

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for the retail investors and the remaining 15 per cent is for non-institutional investors.

Ahead of the public offer, the anchor investors’ portion will be available on Tuesday, January 25, 2021.

Upon its listing, Adani Wilmar will become the seventh Adani group company to debut on the stock market. Currently, six Adani group companies are listed on the domestic exchanges – Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone.

Kotak Mahindra Capital Company, J.P. Morgan India, BofA Securities India, Credit Suisse Securities (India), ICICI Securities, HDFC Bank and BNP Paribas are the book running lead managers to the IPO while Link Intime India is the registrar of the issue.

Apart from this, the share allotment is likely to take place on February 3, 2022, and the shares are expected to be listed on February 8, 2022, according to the timeline given in the RHP.