Adani Wilmar IPO issue price fixed at upper end: Details here

Adani Wilmar, the FMCG company which owns Fortune brand, on Thursday fixed its issue price at Rs 230 per share after the three-day IPO subscription concluded on January 31. 

The company had set a price band of Rs 218-230 per share for the IPO, which opened for bidding on January 27. At the top-end, the company's market cap works out to nearly Rs 30,000 crore.

"Pursuant to the Issue, the Company has been informed that on February 4, 2022, AWL has approved the issuance and allotment of 156,729,745 Equity Shares to the respective applicants in various categories, in terms of the basis of allotmentapproved by the designated stock exchange, National Stock Exchange of India Limited in consultation with the book running lead managers," the company said in a statement.

The Adani Group's company, which is a 50:50 joint venture company between the Adani group and the Wilmar group, saw more than 17 times demand than shares on offer as institutional and retail investors alike queued up to lap up shares, reposing their faith in the issue despite turbulent market.

The issue garnered bids for 212.87 crore shares against an issue size of 12.25 crore shares on the final day of bidding, stock exchange data showed.

Investors poured in bids worth nearly Rs 49,000 crore, 17.3 times more than the issue size.

Qualified institutional investors put in bids for 5.73 times of the portion reserved for them. QIB are vital to a public issue as their portion has to get at least 90 per cent subscription.

Non-institutional investors sought 56 times more shares than the 2.15 crore shares reserved for them.

Retail investors subscribed 3.92 times their part of allotted shares. The shareholder category saw 33 times subscription, while employee quota remained under-subscribed at 51 per cent.

Through the IPO, Adani Wilmar raised Rs 3,600 crore in fresh capital.

The stock is to be listed next week.

Incorporated in 1999, Adani Wilmar is an FMCG food company offering most of the essential kitchen commodities, including edible oil, flour, rice, pulses and sugar.

Branded products account for about 73 per cent of sales of edible oil, food and FMCG in 2020-21 fiscal.

For the year 2020-21, the company had reported net profit of Rs 728 crore on revenues of Rs 3,790 crore.

Recently, Adani Wilmar Ltd had raised Rs 940 crore from anchor investors.

The proceeds of the public issue will be used to fund capital expenditure, reduce debt and for acquisitions.

Kotak Mahindra Capital Company, J P Morgan India, BofA Securities India, Credit Suisse Securities (India), ICICI Securities, HDFC Bank and BNP Paribas were the managers to the offer.

(With inputs from agencies)