Adani Wilmar IPO subscribed 58% on day 1, retail portion booked 0.96 times

The initial public offering (IPO) of Adani Wilmar, a joint venture between Adani Group and Singapore-based Wilmar, was subscribed 58% today. 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.

The employees' portion received 0.05 times the total bids. Non-institutional investors placed bids for 54% of the shares reserved for them.

The Adani Group firm has already collected Rs 940 crore from anchor investors. It plans to raise Rs 3,600 crore through the IPO. The issue will close on January 31.

AWL is a 50:50 joint venture company between Ahmedabad-based Adani group and Singapore's Wilmar group. The company, which sells cooking oils under the Fortune brand, cut its IPO size to Rs 3,600 crore from the Rs 4,500 crore planned earlier.

The company has decided to allocate around 4.09 crore equity shares to anchor investors at  Rs 230 apiece, aggregating the transaction size to  Rs 940 crore.

Adani Wilmar IPO opens today: Should you subscribe to the issue?

The public issue comprises a fresh issue of equity shares and there will not be any secondary offering. The IPO has a price band of Rs 218-230  per  share. The IPO proceeds will be used for capital expenditure, repayment of debt and funding strategic acquisitions and investments.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Lot size of the Adani Wilmar IPO is 65 shares for which one will have to spend Rs 14,950. A retail individual investor can apply for up to 13 lots or 845 shares by spending Rs 194,350.

ICICI Securities, HDFC Bank, BNP Paribas, Kotak Mahindra Capital, JP Morgan, BofA Securities and Credit Suisse are the book running lead managers to the issue.