Adani Group’s IPO is coming after 12 years. The name of the company is Adani Wilmar, know about the company, financial, valuation, IPO date, and many more.
Adani Wilmar IPO Details
| IPO Open Date | 27 Jan 2022 |
| IPO Close Date | 31 Jan 2022 |
| IPO Listing Date | 08 Feb 2022 |
| Minimum lot size and shares | 1 lot and 65 shares |
| Maximum lot size and shares | 13 lots and 845 shares |
| Refund date | 04 Feb 2022 |
| IPO allotment Date | 03 Feb 2022 |
| IPO Issue Type | Book Built issue IPO |
| Employee Discount | 21 |
| Share allotment date | 07 Feb 2022 |
| Fresh Issue | ₹3600 crores |
| Face value | ₹1 per equity share |
| Issue Size | ₹3600 crores |
| Listing Exchange | NSE and BSE |
| IPO Price | ₹218 to ₹230 per equity share |
About Adani Wilmar Company
The company was formed in 1999 as a joint venture between Adani Group and Wilmar Group. Adani Wilmar is one of the Leading FMCG Food Company in India. They manufacture and sell primary kitchen commodities such as edible oil, wheat flour, rice, pulses, and sugar.
Adani Wilmar has three primary segments:
- Food & FMCG
- Edible Oil
- Industry essential
Industry essential
Within the industry essential the company manufactures Oleochemical, Castor oil and their derivatives and Lauric & Bakery fats having 32% and 23% market share in Stearic acid and Glycerin in India.
Edible Oil and Food & FMCG segment
73% of the company’s sales in the Edible Oil Food and FMCG segment come from branded products. Adani Wilmar brand is the market leader in the edible oil segment with an 18.3% market share.
Their brand is Fortune India’s largest selling edible oil brand. In package food also the company has covered many products such as package flour, rice, pulses, gram flour, sugar, soya chunks, and ready-to-cook khichdi.
Adani Wilmar is India’s biggest importer of crude edible oil, their Mundra (Gujarat) refinery is India’s largest edible oil refinery with a capacity of 5000 metric tons per day.
The company has 22 plants in India in which there are 10 crushing units and 19 refineries, apart from this, the company also has 36 least units, which gives them additional refining capacity.
As per September 2021 data, fortune brand has a household reach of 90.51 million households and has more than 5590 distributors covering 1.6 million (35%) retail outlets in India.
64% of the company’s edible oil distributors also cover package food sales. The company has an 18% market share in soya chunks and a 6.6% market share in the Basmati rice segment. They also have a 3.4% market share in the flour segment.
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Adani Wilmar Company’s Financials
| Revenue | ₹28919.70 Crores | FY19 |
| Total Assets | ₹11602.80 Crores | FY19 |
| Profit after tax | ₹375.52 Crores | FY19 |
| Revenue | ₹29767.00 Crores | FY20 |
| Total Assets | ₹11789.50 Crores | FY20 |
| Profit after tax | ₹460.87 Crores | FY20 |
| Revenue | ₹37195.70 Crores | FY21 |
| Total Assets | ₹13326.60 Crores | FY21 |
| Profit after tax | ₹727.65 Crores | FY21 |
In the financial year 20, the total asset increased from 11789.50 to 13326.60 crore. Profit after tax has also increased from Rs 460.87 crore to Rs 727.65 crore.
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Objective of Adani Wilmar IPO
The company is looking to fund fresh capital expenditure of Rs 1900 crore, debt repayment of Rs 1059 crore, and strategic acquisitions of Rs 450 crore from the IPO fund.
Pros of Adani Wilmar IPO
The biggest strength of the company is its market leader status in the edible oil segment, due to this the company’s brand and distribution reach can be used very well for the expansion of other food segments.
Due to their branding, they also get good quality and perception price in procurement which very few industry players have. Consumption of packaged foods in India is still very low compared to large food markets such as USA and China.
Here the maturity of food products still comes from the unorganized segment and due to this, there is a lot of scope for market conversion and expansion in the branded food segment.
For this reason, India’s retail package has high growth expectations from the food market. It is estimated that this segment will grow at a CAGR of 11% to reach a market size of Rs 10.1 lakh crore by the FY25.
All of the company’s manufacturing is done in integrated plants with backward and forward integration, making them face minimal supply chain issues.
Having integrated facilities, it also uses byproducts made from its edible oil manufacturing to make industry essential products like oleochemical, castor oil, and glycerin, which leads to minimum waste and the company can get the maximum benefit from its raw material.
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Cons of Adani Wilmar IPO
The entire business line of the company is dependent on the material procurement agriculture segment, due to which they also have to face agriculture-related risks such as irregular weather, etc.
Apart from this, the company does not have a long-term supply contract, due to which they have to face commodity price volatility at the time of procurement.
Almost 60% of the company’s cost of raw material is used in import, which clearly shows that they have a very high important dependence on raw material.
Due to this, their supply chain risks increase and the importing nation may also have to face agriculture-related risks.
Apart from edible oil, the company has a lot of competition in the packaged food segment, which has established market leaders like ITC in flour, KRBL in rice, etc.
Therefore, to establish them in the food segment, they will have to do a lot of brand expenditure and affords to rise in these segments.
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This article is only for education purpose and the author has his own views and research, so if you invest in these stocks then do it at your own risk and do the research yourself before investing.
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FAQ: Adani Wilmar IPO
The company was formed in 1999 as a joint venture between Adani Group and Wilmar Group. Adani Wilmar is one of the Leading FMCG Food Company in India. They manufacture and sell primary kitchen commodities such as edible oil, wheat flour, rice, pulses, and sugar.
In the financial year 20, the total asset increased from 11789.50 to 13326.60 crore. Profit after tax has also increased from Rs 460.87 crore to Rs 727.65 crore.
The biggest strength of the company is its market leader status in the edible oil segment, due to this the company’s brand and distribution reach can be used very well for the expansion of other food segments. For this reason, India’s retail package has high growth expectations from the food market. It is estimated that this segment will grow at a CAGR of 11% to reach a market size of Rs 10.1 lakh crore by the FY25.
The entire business line of the company is dependent on the material procurement agriculture segment, due to which they also have to face agriculture-related risks such as irregular weather, etc.
Almost 60% of the company’s cost of raw material is used in import, which clearly shows that they have a very high important dependence on raw material.
The company is looking to fund fresh capital expenditure of Rs 1900 crore, debt repayment of Rs 1059 crore, and strategic acquisitions of Rs 450 crore from the IPO fund.