Adani Wilmar IPO Opens Today – Should you Invest in Adani Wilmar IPO?

The Rs. 3600 crore Adani Wilmar IPO has opened today for subscription and will be available till the 31st of January 2022.

Adani Wilmar is a joint venture of Adani Group and the Wilmar Group. The company offers a wide range of FMCG products, including edible oil, wheat flour, rice, pulses, and sugar. Adani Wilmar’s product offerings also include industry essentials such as castor oil and its derivatives, oleochemicals, and de-oiled cakes. Apart from 22 plants across 10 states, the company has a well-established distribution network across the country.

According to the Red Herring Prospectus, Adani Wilmar will be using the proceeds from the issue towards funding capital expenditure for expansion of existing manufacturing facilities, developing new manufacturing facilities, repayment/prepayment of borrowings, funding strategic acquisitions and investments and for general corporate purposes.

Some quick facts about the Adani Wilmar IPO:

Price band of Adani Wilmar IPO

The price band for the IPO is between Rs. 218 and Rs. 230 per share.

Lot size

The minimum lot size for the IPO is 365 shares.

Issue size

The issue size for the IPO is Rs. 3600 crores.

Listing date

Shares of Adani Wilmar are likely to be listed on 8th February 2022.

Key strengths and opportunities

• Diversified product offerings in the FMCG category
• Strong brand recall value
• Well-established distribution network across the country
• Leading player in the branded edible oil and packaged food business
• The largest domestic basic oleochemical manufacturer
• Well-established relationship with leading global suppliers for raw materials
• Well-established manufacturing capabilities
• Experienced and professional management

Key factors to keep in mind while investing in the Adani Wilmar IPO:

In its Red Herring Prospectus, the company has listed some factors which may impact the future performance of the company, such as:

• The company’s operations are dependent on the supply of large amounts of raw material, and any increase in the cost of, or a shortfall in the availability of, such raw materials could have an adverse impact on the company’s business.
• Any reduction in demand or in the production of edible oil products could have an adverse impact on the company’s business.
• Fluctuations in the exchange rate between the Indian rupee and foreign currencies
• For detailed information on the risks associated with the IPO, please refer to the Red Herring Prospectus.
• To invest in the Adani Wilmar IPO, click here.

– Written and contributed by Pradeep Sukumaran.