About Adani Wilmar IPO
Adani Wilmar is set to launch its IPO (Initial Public Offering) which is going to open its offer from 27th of January, 2022 to 31st January 2022. A business that started as a Joint Venture between Adani Group and Wilmar Group in the year 1999. The company formed is an FMCG (Fast Moving Consumer Goods) product offering the most essential products which include rice, edible oil, pulses, sugar, and wheat flour.
Open Date | 27th January 2022 |
Close Date | 31st January 2022 |
Allotment Date | 04th February 2022 |
Listing Date | 08th February 2022 |
Face Value | Rs. 1 per equity share |
Issue Price | Rs. 218-230 per equity share |
Issue Size | 3600 Crore Approx |
Market Lot | 65 shares (Rs. 14,950/-) |
The current GMP (Grey Market Premium) is currently ranging from Rs. 60 – 75 per share meaning the share will list around Rs. 300, if the GMP does not change till the share is listed in the market. The company has not provided any option of ESOP (Employee Stock Option Plan).
The book running Lead Managers appointed by the company is Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited, HDFC Bank Limited and BNP Paribas. The Registrar for the issue is Link Intime India Private Limited. The Promoters of the company is Adani Enterprises Limited, Adani Commodities LLP and Lence Pte. Limited.
The objectives of the company from the Net Proceeds of the issue are –
- The funding is to be used for the development of new manufacturing facilities and expanding the current manufacturing facilities. (“Capital Expenditure”);
- Repayment/prepayment of our borrowings;
- Funding strategic acquisitions and investments
- General corporate purposes.
After reading the Red Herring Prospectus, the company operates 22 plants across 10 states in India, comprising 18 refineries and 10 crushing units. The company has one of the largest refineries is in Mundra which is the largest single location refinery with 5,000 Million Tonnes a day. In addition to 22 plants, the company used 28 leased tolling units for additional manufacturing capacities. The company’s distributors cater to over 1.6 million retail outlets located in 28 states and 8 union territories throughout India.
The financials of the company are – (in Rs. million)
Year ended on | Total Assets | Total Revenue | Profit After Tax | Total Borrowings |
31st March 2019 | 116,028.71 | 289,196.81 | 3,755.21 | 18,294.56 |
31st March 2020 | 117,859.17 | 297,669.86 | 4,608.72 | 23,002.76 |
31st March 2021 | 133,266.40 | 371,956.58 | 7,276.49 | 19,040.08 |
After seeing the financials of the company The Year on Year performance of the company has increased every year (which can be seen in the table above) (All the figures in millions).
The Year on Year increase of Total Assets from 2019 to 2020 has increased by Rs. 1,830.46 which is around 1.57% and in 2020 to 2021 has increased by 15,807.23 around 13.41% which is a good percentage as compared to 2020.
The Total Revenue from 2019 to 2020 has increased by Rs. 8,473.05 around 2.92% and from 2020 to 2021 has increased by Rs. 74,286.72 which is around 24.95% which has been a good percentage as compared to 2020.
The Year on Year increase of Profit After tax from 2019 to 2020 has increased by Rs. 853.51 around 22.72% and from 2020 to 2021 has increased by 2667.77 which is 36.66% is normal increase over the year, but in in terms of numbers, the profits has increased greatly.
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The Borrowings from the year 2019 to 2020 have increased by Rs. 4,652.76 around 25.43% but in the case of 2020 to 2021, the borrowing has decreased by Rs. 3,962.68 which means a decrease of 17.22%, which is a good thing for the company.
What are the things to look out where the company is –
- The company would like to increase its brand value in the market.
- The borrowings of the company have reduced which is a good factor.
- The company would also use to launch its new products in the market.
- If the company goes into liquidation, then the company has assets to pay off its liabilities and to its shareholders as well (which will not happen very easily looking at the financials).
- The company plans to use the money to make strategic investments and acquisitions.
- The company is the largest refined Soyabean Oil in the business and 2nd largest in the branded palm oil market which is good for the company.
- The company has strength in getting raw materials from global suppliers.
- It is one of the largest oleochemical manufacturers in India.
