Adani Wilmar shares gain amid report Adani group may sell entire stake in edible oil maker

Adani Wilmar Ltd shares gained nearly 1 per cent in Monday's trade as the Adani group firm's promoters were reportedly in talks with several consumer goods players to sell their entire stake in the joint venture company for $2.5-3 billion. Following the development, the Adani Wilmar stock added 0.80 per cent to high a high of Rs 320. At this price the company commanded a market capitalisation of 41,401.26 crore compared with Rs 41,258.30 crore on Friday. The scrip has gained of late after hitting a 52-week low of Rs 303.45 on October 26.

A report by the ET quoted executives familiar with the matter, who hinted at the Adani Group's talks with several multinational companies on selling of its entire 43.97 per cent stake in the edible oils packaged grocery player. The deal may get finalised within a month, the report suggested.

Adani Wilmar was recently in news after the Adani group firm reported a loss of Rs 131 crore for September quarter. Adani Wilmar's bottom line was hit by losses in the edible oil segment. It had reported a profit of Rs 49 crore in the same quarter last year. Revenue for the Gautam-Adani group company had slipped 13 per cent year-on-year (YoY) to Rs 12,267 crore for the September quarter against Rs 14,150 crore in the corresponding quarter last year.

The ET report suggested that the ports-to-renewable energy conglomerate was looking to exit a few businesses to focus on its core area: infrastructure. The ET source suggested that there were plans to divest stake in Adani Wilmar are on these lines only. The proceeds from the proposed stake sale would not be utilised to pare debt but to invest in other group businesses, the ET report suggested.

As per the report, the Adani group promoters were looking to cut stakes in non-core assets in a bid to create a liquidity buffer after the Hindenburg Research's scathing report on the group in January this year. The US-based short-seller's report had raised several questions from stock manipulation to accounting frauds at Adani group comapnies. Adding Monday's fall, Adani Wilmar shares are still down 48 per cent year-to-date.

As per the ET report, the Adani group firm is expecting $2.5-3 billion for the stake in the joint venture with Singapore-based Wilmar International.

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