Adani Wilmar’s IPO opened on Thursday for a subscription. The company is offering shares in the price range of Rs 218 to 230.
Important to note here is that Adani Wilmar is a Joint Venture between Adani Group led by billionaire Gautam Adani and the Wilmar group of Singapore. The Joint venture was formed in 1999.
After almost three decades and three phases of growth, Adani Wilmar has managed to reach 1 in every 3 households in India. With 22 manufacturing units and 28 tolling units, the company has become number one in ROCP- refined oils in consumer packs with an 18.3 percent market share of branded Edible oils. The company has achieved the number two spot in packaged wheat flour and number three in packaged rice.
The company has great strategic assets as it has acquired Bangladesh Edible Oil company and with a state of the art plant in Hazira which was added in December 2020, it has a capacity to upscale.
Adani Wilmar’s portfolio is divided into three verticals: Edible oil, Food & FMCG, and Industry Essentials. Adani Wilmar’s products are available on all leading websites, they have a presence in every other Kirana store in cities, and with their local brands they are reaching out to tier-3 markets as well, and with their website FortuneOnline.in they have a reach across all sections. Their distribution network is robust.
The initial public issue was Rs 4,500 crore which was reduced by 20 percent to Rs 3,600 crore to make it more focused. With a 12 percent dilution Promoters, Adani, and Wilmar group will hold 88 percent of the company.
Adani Wilmar has great potential as the food market will grow faster and the company which offers quality ready-to-eat food with their strong supply chain will have an advantage.