Adani Wilmar is The Best Performing Asian IPO

| Updated: May 27, 2022 10:16 am

Gautam Adani’s strong performance bodes well as he expands his reach. Adani Wilmar Ltd. of India is an outlier among Asia’s newly listed stocks. The food company has nearly tripled in value since its inception, while most newcomers are trading at a loss.

Shares in the firm, a joint venture between Gautam Adani’s group and Singapore’s Wilmar International Ltd., have outperformed 121 Asian initial public offerings worth more than $100 million this year. Almost two-thirds of the region’s new listings are in the red, owing to rising interest rates and the conflict in Ukraine.

The Singapore Monetary Authority and Nippon Life India were among the investors in Adani Wilmar’s initial public offering, which produces Fortune brand cooking oils, wheat flour, rice, pulses, sugar, and other food products. The company stated that a portion of the $486 million offering would be used to expand facilities, repay loans, and make strategic acquisitions.

According to an analyst, the company will “continue to gain market share due to a strong distribution network, diversified product portfolio, market leadership in key categories, focus on rural market, new product launches, and strong parentage.”

He added that expected acquisitions will result in a gain in market share. The company recently announced the acquisition of several brands, including the Kohinoor cooking brand for India.

Other Adani-related stocks have performed well as well. Adani Power Ltd. has outperformed the S&P BSE 500 index by more than 200 percent this year. Adani Green Energy Ltd. is the fifth best performer, up 65 percent year to date despite the fact that the company has no analyst coverage.

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