Adani Wilmar IPO: Fast-moving consumer goods, or FMCG company Adani Wilmar is all set to launch its first public issue on January 27, that is next week, multiple media reports said recently. The company, led by Indian business tycoon Gautam Adani and Singapore-based firm Wilmar, plans to raise Rs 3,600 crore through its first initial public offering, or IPO. The details regarding the Adani Wilmar IPO is expected soon, as the company has not made any announcement yet. However, multiple reports have confirmed about the launch of the public offer next week. Adani Wilmar Limited is best known for its edible oil products under the brand name of ‘Fortune’.
As per a report by MoneyControl, the IPO will be closed for bidding on January 31. “ The plan is to launch the issue on 27th January and close it on 31st January,” a person in the know told the media house. This, according to a PTI report, was confirmed by Adani Enterprises in a regulatory filing on Thursday.
It is to be noted that January 29 and 30 fall on a weekend when markets will not be open. The IPO will close a day before the Union budget is presented in the Parliament.
Some of the rivals listed by Adani Wilmar include Ruchi Soya, HUL, Britannia, Tata Consumer Products, Dabur India, Marico and Nestle India, as per the report by Moneycontrol. The Adani Wilmar IPO comes at a time when the trend of launching public issue and benefitting hugely from it is at peak, with more and more people rushing towards investing in initial share sales.
According to another source cited by Moneycontrol, the anchor investors portion is likely to be opened for bidding on January 25, Tuesday for the Adani Wilmar IPO.
Adani Wilmar Limited was supposed to raise Rs 4,500 crore through its IPO initially. However, a recent PTI report indicated that the issue size was cut to Rs 3,600 crore now. There will not be any secondary offering. The company has only reduced the portion of general corporate purposes and not reduced the core objects of the issue.
Out of the IPO proceeds, Rs 1,900 crore will be used for capital expenditure, Rs 1,100 crore will be used for the repayment of debt and Rs 500 crore in funding strategic acquisitions and investments. When contacted to confirm the development, a company’s spokesperson declined to comment, PTI said in its report dated January 14.
According to the DHRP submitted to market regulator Sebi, the proceeds from the IPO will be used for funding capital expenditure for expansion of the company’s existing manufacturing facilities and developing new manufacturing facilities. It will also be used for repayment/prepayment of borrowings, funding strategic acquisitions and investments and for general corporate purposes.
Currently, six Adani group companies are listed on domestic bourses. Apart from Adani Enterprises, other listed ones are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone. The Adani Wilmar IPO is expected to bring a boost to the Adani Group.
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