Adani Wilmar had fixed the stock price for the issue at Rs 230, while the stock is listed on BSE at Rs 221. In this sense, those who had invested in the IPO have suffered a loss of Rs 9 per share at the time of listing.
Adani Wilmar Listing Today: Adani Wilmar, a company that makes branded edible oil and packaged food, has disappointed those investing in IPO. Today the company’s stock is listed at a discount in the stock market. Adani Wilmar had fixed the stock price for the issue at Rs 230, while the stock is listed on BSE at Rs 221. In this sense, those who had invested in the IPO have suffered a loss of Rs 9 per share. This is the 7th company of Adani Group to be listed in the market. Now the question is arising that what should investors do after the loss. Should I sell the shares or hold for a longer period for better returns?
Can hold for long term
Ayush Agarwal, Senior Analyst, Swastika Investmart Ltd, 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.
risk factor as well
According to brokerage house Choice Broking, there is also some risk factor due to the unfavourable policies and regulations of the varnament. 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. However, the brokerage house had advised to subscribe, expressing the expectation of further rise in the stock. According to the brokerage, 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.
Investors gave better response
Adani Wilmar’s IPO got a better response from investors. Overall this issue was subscribed 17.37 times. In this, 50 per cent was reserved for Qualified Institutional Investors (QIBs) and this part was filled 5.73 times overall. There was a reserve of 15 per cent for non-institutional investors and this part was filled 56.30 times. While 35 per cent was reserved for retail investors and it was filled 3.92 times. The reserve part for employees filled 0.51 times and the reserve part for shareholders 33.33 times.
About the IPO
Adani Wilmar had fixed the price band for the IPO at Rs 218-230 per share. Adani Wilmer manufactures edible oil and other food products from Fortune brand. There was 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.
(Disclaimer: The investment advice here is given by the brokerage house. This is not the personal view of The Financial Express. There are risks in the market, so consult an expert before investing.)
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