Adani Wilmar has a plan to raise Rs 3600 crore through its IPO. The company has fixed the price band for this at Rs 218-230 per share.
Adani Wilmar IPO Open Today: If you are thinking of earning money by investing in the primary market, then you have a better chance than today i.e. January 27. Adani Wilmar, the second IPO of the year 2022, is opening for investment from today. Adani Wilmar has a plan to raise Rs 3600 crore through its IPO. The company has fixed the price band for this at Rs 218-230 per share. You can invest in this issue till January 31. Adani Wilmer manufactures edible oil and other food products under the Fortune brand. Brokerage houses are looking positive regarding the IPO of this Adani Group company. He has described the valuation for the IPO as attractive and recommends to subscribe.
strong market position
Brokerage house Choice Broking says that the company has a strong market position in the case of edible oil and other food products. The company has a leading position in the market in Raw Material Sourcing. Manufacturing capacity is strong. The brokerage house says that the valuation of the company is looking better than that of Pierce, further strengthening of the company’s business is expected. The brokerage house has advised to subscribe while expecting further rise in the stock.
risk factor as well
However, the brokerage house has also mentioned that there is some risk factor due to the unfavourable policy and regulation of the government. Due to this there may be some problem in the expansion of food and FMCG business. The impact can also be seen due to volatility in the prices of essential commodities, inflation and unfavourable forex rates.
About the IPO
In Adani Wilmar’s IPO, fresh equity shares of Rs 3600 crore will be issued at a face value of Re 1. There will be no Offer for Sale (OFS) in this issue. Earlier the company had kept the size of the IPO at Rs 4500 crore, however later it was reduced to Rs 3600 crore. The company has reserved shares worth Rs 107 crore for its employees. They will get a discount of Rs 21 per share in the bidding. This will be the 7th company of Adani Group to be listed in the market.
According to DRHP, the company will spend Rs 1900 crore as capital expenditure. It will spend Rs 1059 crore on debt payments, while it will make strategic acquisitions with Rs 450 crore.
price band
Adani Wilmar has fixed the price band for IPO at Rs 218-230 per share. While the valuation of the company has been estimated at Rs 26287 crore. Adani Group and Singapore-based Wilmar Group hold 50-50 per cent stake in Adani Wilmar. The company has kept the lot size of 65 shares for the IPO. In terms of upper price band of Rs 230, at least Rs 14,950 will have to be invested in it. At the same time, a maximum of Rs 194,350 will have to be invested.
reserve for whom
Adani Wilmar has reserved 50 per cent stake in the IPO for Qualified Institutional Investors (QIBs). At the same time, 15 percent for non-institutional investors and 35 percent for retail investors has been reserved. Kotak Mahindra Capital, JP Morgan India, BofA Securities India, Credit Suisse Securities (India), ICICI Securities, HDFC Bank and BNP Paribas will be the Book Running Lead Managers for the issue.
(Disclaimer: The investment advice here is given by the brokerage house. This is not the personal view of Financial Express. There are risks in the market, so take expert advice before investing.)
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