Adani Enterprises has canceled the demerger plan of its food FMCG business to Adani Wilmar. This decision would have allowed the Adani group promoters to control Adani Wilmar. The company's board decided to withdraw the arrangement with Adani Wilmar (AWL) to comply with the minimum public shareholding (MPS) requirement.
The company had announced the scheme on August 1, 2024, stating that the food FMCG business had achieved self-sustainability and was thriving independently. Adani Enterprises, holding almost 44% stake in Adani Wilmar through Adani Commodities, intended for the demerger to integrate it directly under the Adani group promoter and promoter group shareholders, consequently discontinuing its status as a joint venture entity of Adani Enterprises.
“During the period in which AWL was implementing the MPS strategy, in accordance with the relevant SEBI Circulars, in order to offer directional clarity to shareholders, the draft Scheme is hereby withdrawn,” the company said.
Adani Wilmar was listed in February 2022, and according to Sebi regulations, the promoters have until 2025 to decrease their stake to 75 percent. Currently, the promoter group, which includes the Adani group and Lence Pte, holds 87.87 percent stake in the company.
Furthermore, the demerger proposal was intended to facilitate the promoters' divestment of stake in Adani Wilmar. Although a potential stake sale was contemplated last year, progress was stymied by challenges related to valuation and pricing issues.
The board of Adani Enterprises has given its approval for a public issuance of Non-Convertible Debentures totaling Rs 2,000 crore. Additionally, the board has decided to withdraw the draft scheme of arrangement with Adani Wilmar.
"The Board at the said Meeting has granted approval for public issuance of Non-Convertible Debentures for an amount not exceeding Rs. 2,000 crores in one or more tranches, subject to all applicable regulatory / statutory approval(s),” said the company in a filing to the stock exchanges.
“The Board at the said Meeting has decided to withdraw the draft Scheme of Arrangement among Adani Enterprises Limited and Adani Wilmar Limited and their respective shareholders & creditors (“draft Scheme”) that was approved by the Board in their meeting held on 1st August, 2024,” the filing added.
Adani Enterprises Q2 results
Adani Enterprises announced a significant 664% year-on-year increase in its consolidated net profit for the September quarter, reaching ₹1,742 crore compared to Rs 228 crore in the same period last year. The flagship company of the Adani Group reported operational revenue of Rs 22,608 crore for the quarter, a 16% increase from the previous year. EBITDA also rose by 47% to Rs 8,654 crore, driven by the strong operational performance of Adani New Industries Ltd (ANIL) ecosystem and Airports.
“Adani Enterprises Ltd (AEL) continues to focus on investing in logistics, energy transition and adjacent sectors that are core to the economic growth of the country. This record-breaking half-year performance has been led by Adani New Industries Ltd (ANIL) and Adani Airport Holdings Ltd (AAHL) with their rapid growth in capacity additions and asset utilisation,” said Gautam Adani, Chairman of the Adani Group.