Adani Wilmar IPO shares listing day strategy: Listing tomorrow, check grey market premium; buy, sell, hold?

Adani Wilmar, whose IPO got 17 times subscription, is scheduled to make its stock market debut on Tuesday, 8 February 2022. Owing to the global sell-off and dampened sentiments in the primary market, the IPO received a moderate response. In the primary market, Adani Wilmar shares were quoting at a premium of 11 per cent over the issue price of Rs 230 per share, according to the people who deal in unlisted shares of the companies. Analysts expect Adani Wilmar IPO shares listing at a premium of 20 per cent over issue price.  “Adani Wilmar, a market leader in the branded edible oil and packaged food industries, is expected to give listing gains around 15 to 20 percent. Since the issue witnessed moderate response due to ongoing negative sentiments and volatility in the secondary market, we expect it to list in the range of Rs 260-265,” Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, told Financial Express Online.

Chepa advised long term investors and investors looking to buy the stock on the listing day to consider holding or buying this stock, given its wide distribution, healthy financials, strong brand recall, increasing reach and household consumption, its prospects appear to be optimistic over the long term. Likhita Chepa suggested short-term investors to hold the stock and book profits at 30-40 per cent i.e they can book profits at Rs 290-300.

Adani Wilmar is the joint venture between Adani Group and Wilmar Group of Singapore. It’s  IPO comprised only fresh issue of equity shares. Analysts say that the pricing also looked moderate. “Strong parentage and pan India distribution network are among the few factors which may attract investors. The listing should be reasonable and may reward over 15% gains over issue price,” Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told Financial Express Online.

The retail investors section was subscribed 3.92 times, while non-institutional investors bid for 56 times more shares than the 2.15 crore shares reserved for them. Qualified institutional investors put in bids for 5.73 times of the portion reserved for them. Investors should book profits on listing gains considering a globally weaker sentiment in current markets,  AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online. “But investors can accumulate this stock on a 10-20% drop due to its strong business model & leadership in the edible oil & packaged foods segment,” Ramachandran, said.

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