Adani Wilmar’s stock will be listed on February 8. The issue got a good response from the investors. Overall this issue is subscribed 17.37 times. The stock is trading at a premium even in the gray market.
Adani Wilmar IPO Listing Expectations: The stock of Adani Wilmar, a company of Adani Group, which makes edible oil and other food products, is to be listed in the stock market on 8 February i.e. Tuesday. The issue got a good response from the investors. Overall this issue is subscribed 17.37 times. The stock is trading at a premium even in the gray market. But the concern of investors is that the way the market is going turbulent, in such a sell-off, Adani Wilmar’s listing may be weakened or the listing gain may decrease. Experts say that the company’s IPO is at an attractive valuation in its sector. The growth rate of the company is also good. In such a situation, this stock can give good returns in the long term. Talking about listing, it can give 10 to 15 percent return. The company has fixed the price band for this at Rs 218-230 per share.
Can provide listing gain
Tradingo’s founder Parth Nyati says that Adani Wilmar’s IPO has received good response from investors. The company occupies a leading position in the branded edible oil and packaged food segment. When it comes to IPOs, the company has kept valuations cheaper than peer companies. Looking at the FY21 earnings, the IPO is currently at a PE multiple of 36. Talking about the current market scenario, there is a sell-off in the market. But if you look at the trend on GMP, it is expected that Adani Wilmar’s stock can give 10-15 percent listing gain in the market. The current GMP is Rs 24, so it seems that the stock may list around Rs 254. This is 10% more than the issue price.
Better for long term investment
Ayush Aggarwal says that Adani Wilmar will be the 7th company of Adani Group to be listed in the market. This company has already recognized itself in the FMCG sector. The company is like a market leader in branded edible oil. The IPO is currently on P/BV of 7x. At the same time, the multiple of 36 is at PE. It is attractive compared to the valuations of other companies in this sector. The company has also shown strong growth in the last 5 years. In such a situation, if you have got the stock, then it is advisable to stay in it for the long term.
How was the response of investors
Adani Wilmar had reserved 50 per cent stake in the IPO for Qualified Institutional Investors (QIBs). This part is filled 5.73 times overall. At the same time, there was a reserve of 15 percent for non-institutional investors and this part is filled 56.30 times. 35 percent was reserved for retail investors and it is 3.92 times full. The reserve share for employees is 0.51 times and the reserve part for shareholders is 33.33 times. Overall this issue is subscribed 17.37 times.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
,