Adani Wilmar hires investment banks to raise Rs 5,000 crore via IPO

The latest to join the list of companies that are attempting to go public is Adani Wilmar. The firm, which is a joint venture between the Adani Group and Wilmar International - Singapore, is looking to raise Rs 5,000 crore through an initial public offering (IPO), Mint reported.

A successful IPO would make Adani Wilmar the seventh Adani Group entity to be listed on the Indian bourses, following Adani Green Energy Ltd, Adani Power Ltd, Adani Enterprises, Adani Transmission Ltd, Adani Total Gas Ltd, and Adani Ports and Special Economic Zones Ltd.

Adani Wilmar boasts of the largest range of edible oils comprising sunflower, soya bean, and rice bran, among others. The firm has hired investment banks such as JP Morgan and Kotak Mahindra Capital to manage the initial public offer (IPO).

The report quoted a source requesting anonymity as saying, "They have started work on the draft red herring prospectus (DRHP)."

The DRHP is a document that contains details of companies that are issuing an IPO. The document, prepared by merchant banks, has details of the business such as financials, operations, industry positioning, promoters of the company and other information that can guide a potential investor.

The firm reported an 18 percent increase in revenue to Rs 26,486 crores for a period of nine months, ending 31 December, Hindustan Times reported.

For the same period, the firm's operating profit increased by 5 percent to Rs 1,050 crore. Despite the COVID-19 setback, the company's revenue rose 31 percent to Rs 10,267 crores, in the quarter ending 31 December.

With this, Adani Wilmar will join companies such as Nazara Technologies, Kalyan Jewellers, Ease My Trip, Rail Tel, Indigo Paints which have offered IPOs in recent times.