Shares of Adani Wilmar Ltd tumbled 9 per cent in Friday's trade as the two-day offer for sale (OFS) by one of the promoters, Adani Commodities LLP, kicked off. The stock fell, as the floor price for the offer was set t Rs 275, which was at a 15.11 per cent discount to Thursday's closing price of Rs 323.95 for Adani Wilmar. Following the development, the stock plunged 9.24 per cent to hit a low of Rs 294 on BSE. The scrip is down 18.69 per cent in the past one year and 47 per cent in the past two years.
Adani Commodities LLP is looking to offload up to 17,54,56,612 shares in Adani Wilmar, representing 13.50 per cent of the total issued and paid up equity share capital of the Adani Wilmar. Non-retail investors can participate in the OFS today while retail investors will be allowed to bid on Monday., January 13. Non-retail investors may also indicate their willingness to carry forward their unallotted bids to Monday for allocation to them, in the unsubscribed portion of retail category.
Adani Commodities LLP intends to sell up to 8,44,79,110 additional shares, representing 6.50 per cent of the total issued and paid up equity share capital of the company.
"In the event that the Oversubscription Option is exercised, the Equity Shares forming part of the Base Offer Size and the Oversubscription Option will represent 20.00% of the total issued and paid up Equity Share capital of the company (held in dematerialized form in demat accounts with the relevant depository participant), i.e. 25,99,35,722 Equity Shares, and will collectively, hereinafter be referred to as Offer Share," Adani Wilmar said.
Adani Enterprises eventually aims to sell its entire 44 per cent stake for $2.2 billion. Ventura Securities recently said the strategic sale of Adani Wilmar Ltd looks all set to enhance Adani Enterprises' liquidity. The proceeds, which could be leveraged for 2 times debt, will enable Adani Enterprises to raise additional debt of Rs 35,000–36,000 crore, creating a formidable Rs 50,000– 52,000 crore corpus, Ventura said.
"At a portfolio level, the Adani Group's equity deployed as a percentage of overall assets currently stands at 63 per cent and will increase further following this transaction. This highlights the group’s consistent focus on maintaining a healthy capital structure and a robust capital management," it said.
Adani Wilmar told stock exchanges that the offer is being undertaken by the seller for, inter-alia, achieving the minimum public shareholding of the company as prescribed under Rule 19(2)(b) and Rule 19A of the Securities Contracts (Regulation) Rules, 1957, as amended, and Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.