The shares of Adani Wilmar, a joint venture between Adani Group and Singapore-based Wilmar, will list on BSE and NSE on February 8. Analysts expect the Adani Group firm to make a decent market debut amid ongoing correction in the market.
The Grey Market Premium (GMP) of the IPO stood at Rs 23-Rs 24 today, indicating a listing of over 10% to the issue price.
The IPO had a price band of Rs 218-230 per share.
The issue was subscribed 17.7% on the final day. The IPO received bids for 212.87 crore shares against the issue size of 12.25 crore equity shares on January 31. The portion allocated for retail investors was subscribed 3.92 times.
Adani Wilmar IPO issue price fixed at upper end: Details here
The employees' portion received 51% of the total bids reserved for them. Non-institutional investors placed bids for 56.3 times of the shares reserved for them. The issue received bids for 7.05 crore equity shares against the IPO size of 12.25 crore equity shares on the first day.
The portion allocated for retail investors was subscribed 0.96 times. Ahead of the IPO, the Adani Group firm had already collected Rs 940 crore from anchor investors. It has raised Rs 3,600 crore through the IPO.
The public issue comprised a fresh issue of equity shares and there was not any secondary offering. The IPO proceeds will be used for capital expenditure, repayment of debt and funding strategic acquisitions and investments.
A majority of analysts expect the stock to list in a range of 15% to 20% premium to the issue price. Here's a look at what they said ahead of Adani Wilmar's debut on bourses.
Aayush Agrawal, Senior Analyst, Swastika Investmart said, "Adani Wilmar will be the seventh listed company of the Adani Group, which has already established itself as a brand in the FMCG sector. The company is a leader in branded edible oils and packaged foods in India. The IPO is priced at a P/BV of 7x and PE of 36x on its FY21 earnings which is slightly lower than its listed peers. Along with this, the company reported tremendous growth over the past few years. Based on this, we recommend investors stay invested for gains in the long term.
We expect the shares to list at a premium of 15% to 20% of the offer price based on the current GMP of Rs 28 which is 13 % higher than its price band."
Amarjeet Maurya, AVP - Mid Caps, Angel One said, "We expect decent listing gains on the back of lower valuation which is 37.6x TTM PE. Further, Adani Wilmar has a strong brand recall, wide distribution, a better financial track record, and healthy ROE."
AR Ramachandran, co-founder and trainer, Tips2Trades said, "Considering decent demand from retail investors subscription and strong institutional demand, Adani Wilmar should open at an 8-12% premium on listing day. In case, the stock price slips post listing, investors should start accumulating this stock due to strong brand name and robust business model in the edible oil and food segment."
Likhita Chepa, Senior Research Analyst at CapitalVia Global Research said, "Adani Wilmar, a market leader in the branded edible oil and packaged food industries, is expected to give listing gains of around 15 to 20 percent. Since the issue witnessed moderate response due to the ongoing negative sentiments and volatility in the secondary market, we expect it to list in the range of Rs 260 - 265.
Long-term investors and investors looking to buy the stock on the listing day can consider holding/buying this stock, given its wide distribution, healthy financials, strong brand recall, increasing reach and household consumption, its prospects appear to be optimistic over the long term.
Short term investors can hold the stock and book profits at 30 to 40 percent that is they can book profits at Rs 290 - 300."