Adani Wilmar IPO: The Initial Public Offer of Adani Wilmar, one of the country’s largest FMCG (fast-moving consumer goods) companies, is going to be listed on BSE and NSE today i.e. on February 8. Experts believe that the shares of Adani Wilmar can enter the stock market at a premium of 15% over its issue price and attributed this to the company’s dominant position in the branded edible oil industry, its steady growth in the packaged food business, and its product portfolio. Factors such as diversity, good financial numbers of the company and good brand value were cited.
Adani Wilmar’s IPO took place between January 27 and 31 and received 17.37 times more bids. The IPO received a good response from all types of investors, although the volatility in the market during that period affected it a bit. The highest bid for the IPO came from the Non-Institutional Investors (NII) category, who bid 56.30 times more than their allotted quota. Shareholders quota was at number two, which got 33.33 times more subscriptions.
Qualified Institutional Buyers (QIBs) and retail investors bid 5.73 and 3.92 times higher, respectively, for their respective shares. The share reserved for the employees of the company could be filled only half a percent.
The share price of Adani Wilmar’s IPO was fixed at Rs 230. However, the experts broadly expect that the shares of Adani Wilmar may get listed at a price of Rs 265 with a premium of around Rs 35. If this happens, Adani Wilmar’s market capitalization will be Rs 34,500 crore, which was Rs 30,000 crore at the time of the IPO.
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Likita Chepa, Senior Research Analyst, Capital Via Global Research, said, “Adani Wilmar is one of the leaders in edible oil and packaged food. It is expected to list at a premium of around 15 to 20 per cent. Ltd received moderate response due to the ongoing volatility in the stock market. So, we expect it to list between Rs 260-265.”
Ankur Saraswat, Research Analyst, Trustline Securities, said, “The company has a strong distribution network across the country and quality global suppliers. It has a comprehensively integrated business model, handled by a professional and experienced management team. Therefore, we expect its listing price to be Rs 265, which includes listing gain of Rs 35 per share.”
Meanwhile, shares of Adani Wilmar were available in the gray market at Rs 255-260 per share on Monday, which is around 11-13 per cent higher than its issue price.
Let us tell you that Adani Wilmar was established in 1999. It is a joint venture between Adani Group and Wilmar of Singapore. It sells oils and other food items under the Fortune brand. Earlier, six companies of Adani Group, Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone have been listed on the stock exchange.
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