Adani Wilmar shares tank 5% amid report Adani Enterprises may sell stake in Wilmar venture

Shares of Adani Wilmar dropped nearly 5 per cent in Wednesday's trade amid a report that suggested Adani group's flagship Adani Enterprises was exploring selling its stake in its Mumbai-listed consumer-staple joint venture with Wilmar International Ltd, freeing up capital for their core business, according to people familiar with the matter.

A company update suggesting reaffirming of Adani Wiilmar's long and short-term bank facilities and commercial papers by CARE Ratings, however, capped the downside on the counter.

The stock declined 4.84 per cent to hit a low of Rs 374 on BSE.

As per the Bloomberg report, the conglomerate has been considering a potential sale of its 44 per cent stake in Adani Wilmar Ltd for a few months, the people said, asking not to be identified as the information is confidential. Adani’s shares are worth about $2.7 billion at the current share price.

Chairman of the group, Gautam Adani and his family could retain a minority stake in a personal capacity following the sale, the report added. Wilmar could retain its stake in the business.

Adani Enterprises might also decide to keep its stake, the report stated, adding that the deliberations are still at an early stage.

Adani Wilmar reported a loss of Rs 79 crore in the June quarter; its Ebitda slipped 71 per cent to Rs 130 crore.

Also read: Hot stocks on August 9, 2023: Suzlon Energy, IRCON, Shyam Metalics, HCC, Adani Wilmar and more

Nuvama Institutional Equities recently reduced the stock's price target to Rs 600 from Rs 625 earlier, saying slippage in edible oil prices results in weak June quarter performance. The brokerage said Q1 revenue and Ebitda were below its estimates. Nuvama said Adani Wilmar continued to gain market share in the edible oil and wheat flour but lost market share in rice. It cut FY24 and FY25 earnings per share estimates for Adani Wilmar by 8.1-8.5 per cent.

Also read: Tata Power to share Q1 results today; profit may drop up to 20% as coal biz weighs

Also read: 3,200% return in 2023! Top BSE stock performer announces split of shares