Adani Wilmar, a joint venture between Gautam Adani-led Adani Group and Singapore-based Wilmar, has had a dream journey since its listing on the domestic exchange on February 8, 2022. The newly-listed company has gained as much as 72% against its issue price within three sessions, with stock price hitting 20% upper circuit for the second consecutive session on Thursday.
The stock, which was listed at a 4% discount at ₹221 against the issue price of ₹230, hit a fresh high of ₹381.80 today, clocking 72% growth in just three days of listing. Driven by a strong rally in share price, the company has entered the league of largecap stocks with market capitalisation of ₹50,000 crore.
On Thursday, Adani Wilmar shares opened higher at ₹350.20 against previous close of ₹318.20 and touched an upper circuit limit of 20% at ₹381.80 on the BSE. There was a spurt in volume trade as 59 lakh shares worth ₹220.4 crore changed hands over the counter against two-week average volume of 58.10 lakh scrips. The market capitalisation of the company stood at ₹49,621.7 crore at the end of today’s session. Meanwhile, the benchmark BSE Sensex closed 460 points higher at 58,926.
Adani Wilmar is the seventh Adani Group company listed on the domestic exchange. Adani Power, Adani Green Energy, Adani Transmission, Adani Total Gas, Adani Enterprises, and Adani Ports and Special Economic Zone are already listed on the exchange. It is sixth biggest company within the group in terms of market cap. Adani Power is the smallest with a market cap of ₹47,410 crore.
Adani Wilmar’s ₹3,600 crore IPO was subscribed 17.37 times. The three-day public offer, which opened between January 27-31, got an overwhelming response from non-institutional investors as the quota set aside for them was subscribed 56.30 times. The portion for retail investors and qualified institutional buyers was subscribed 3.92 times and 5.73 times, respectively, as per the data on NSE.
Going forward, the company intends to use the IPO proceeds to fund capital expenditure for the expansion of existing manufacturing facilities as well as develop new units. A part of the funds will be used to repay debts, fund strategic acquisitions and investments, and meet general corporate requirements.
The FMCG company, which sells cooking oils under the Fortune brand, reported a profit after tax (PAT) of ₹727.65 crore during the year ended March 31, 2021, compared to ₹460.87 crore in the previous fiscal. The total revenue of the company stood at ₹37,196 crore in FY21 as against ₹29,767 crore in the financial year ended March 31, 2020.
The board of the company is set to meet on February 14 to consider and approve financial results for the quarter and nine months ended on December 31, 2021.
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