Adani Wilmar has filed its draft red herring prospectus with the market regulator Sebi for launching its own initial public offering on stock exchanges BSE and NSE. The company is a 50:50 joint venture between Adani Group and Wilmar Group.
One of the few large FMCG food companies in India, Adani Wilmar offers most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses and sugar under a diverse range of brands across a broad spectrum.
The FMCG firm has proposed an IPO aggregating to a fresh issue of Rs4,500cr (about $600M).
Adani Enterprises in its regulatory filing on the proposed IPO said that "there will not be any secondary offering."
Proceeds from the IPO will be used by Adani Wilmar for - funding capital expenditure for expansion of AWL's existing manufacturing facilities and developing new manufacturing facilities; repayment/prepayment of borrowings; to fund strategic acquisitions and investments; and general corporate purposes.
Adani Enterprises said that the Proposed Listing is intended to further the growth of AWL's operations by increasing its market visibility and awareness among current and potential customers.
Also, the Proposed Listing and issue price of the IPO Shares are subject to many factors, including but not limited to the book-building process under Indian regulations, receipt of applicable approvals and external factors such as price/earnings ratio, level of investor interest, prevailing market conditions and certain other considerations. As there is no assurance that the Proposed Listing will proceed, shareholders and potential investors are advised to exercise caution when dealing with the securities of the Company.
Adani Enterprises will make further announcements of any material developments on this matter as and when appropriate.
At around 10.30 AM, Adani Enterprises was trading at Rs1436.75 per piece flat compared to the previous closing on Sensex. The stock has touched an intraday high and low of Rs1470 per piece and Rs1432.15 per piece respectively.