Adani Wilmar IPO: Adani Wilmar, another company of Adani Group, is also ready to be listed in the stock market. Adani Wilmar is one of the leading FMCG companies in the country. Adani Wilmar’s Initial Public Offer (IPO) will open on Thursday, January 27 and can be subscribed till Monday, January 31. The company is issuing a fresh issue of Rs 3,600 crore through this IPO and the entire amount will go to the company’s account.
Adani Wilmar said that out of the proceeds of the IPO, Rs 1,900 crore will be used for capital expenditure. At the same time, about Rs 1,058.9 crore will be used to reduce the debt on the company and the remaining Rs 450 crore will be spent on strategic acquisitions and other investment opportunities. Adani Wilmar is selling its shares in the IPO in the range of Rs 218-230.
Most of the analyzes are excited about the prospects of this company post listing, advising investors to subscribe to the issue. He says that the company’s diversified portfolio, strong brand value and raw material sourcing capabilities can drive its growth in future. Let us tell you that Adani Wilmar sells its products in the market with the Fortune brand name.
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What is Angel One’s opinion?
Brokerage firm Angel One has advised to subscribe to Adani Wilmar’s IPO. The brokerage said, “Coming to the valuation of the company, its TTM P/E at the upper price band will be around 37.6 times, which looks reasonable. Considering that the company’s profits during the financial years 2019 to 2021 and Earnings have grown by 13 per cent and 39 per cent, respectively.”
The company’s valuation is cheaper than its peers in the FMCG sector- Nestle and Britannia Industries, which are trading at PEs of 81.6x and 54.7x. The average PE of its peers is 57.6 times.
Angel One said, “Adani Wilmar has a strong brand and a wide distribution network. The company has a good financial track record and a healthy ROE. Thus we believe that the valuation of the company is fair. level and we recommend subscribing to this IPO.”
However, Angel One has also said in its note that high volatility in raw material prices and increased competition in the industry could impact the company’s profitability.
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What is the opinion of Choice Broking?
Brokerage firm Choice Broking said in a note, “The company’s edible oil business continues to see strong growth. At the same time, the company also has a huge opportunity to capitalize on the food and FMCG business segment. Taking these aspects into consideration, We recommend subscribing to this issue.”
What is the opinion of Marwari Financial Services?
Marwari Financial Services believes that the IPO of Adani Wilmar is available at a reasonable valuation compared to its competitors. “We give this IPO a ‘subscribe’ rating. Adani Wilmar is the leading consumer products company in the country and the market leader in the branded edible oil category,” the brokerage said.
Adani Wilmar is a 50:50 joint venture joint venture between Gautam Adani-owned Adani Group and Singapore-based Wilmar Group. The company sells edible oils under the Fortune brand. Apart from edible oil, the company also sells rice, flour and sugar. Apart from this, the company also sells products like soap, hand wash and sanitizer.
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