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Adani Wilmar Listing: Will panic selloff hurt Adani Wilmar listing? Here’s what grey market signals


Just a day ahead of its listing, Adani Wilmar (AWL) seems to be losing its sheen in the grey market, thanks to intense selloff in the secondary market and muted response to the recent issues.

The Gautam Adani-led company is commanding a premium of Rs 22-25 in the unofficial market, merely 10 per cent over its issue price of Rs 230, which was about Rs 35 on Friday. The issue was commanding a premium of Rs 100 earlier.

Market participants expect the company to make a decent debut on the bourses, thanks to its sound parentage, conservative valuations and growth prospects.

However, they also warned about poor sentiments in the secondary markets and the muted performance of the recently listed issues, which may weigh on the market sentiments.

Amarjeet Maurya, AVP – Midcaps, Angel One expects decent listing gain on back of lower valuation, strong brand recall, wide distribution, a better financial track record, and healthy ROE.

The IPO of Adani Wilmar was open for subscription between January 27-31 as the company sold its shares in the price band of Rs 218-230 a peice

Likhita Chepa, Senior Research Analyst, CapitalVia Global Research said that Adani Wilmar, a market leader in the branded edible oil and packaged food industries, is expected to give listing gains around 15 to 20 per cent.

Long-term investors can consider holding 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, she added.

The company raised Rs 3,600 crore via its initial stake sale as the issue was subscribed 17.37 times, thanks to heavy bidding from HNI investors.

The QIB quota was subscribed 5.73 times, whereas the HNI portion was subscribed 56.3 times. Retail Allocation fetched bids for a little less than 4 times. Employee reservation received merely 50 per cent subscription.

The company enjoys a leadership position in branded edible oil and packaged food business. Strong brand recall and broad customer reach coupled with a diversified products portfolio, said Ankur Saraswat, Research Analyst, Trustline Securities.

“Pan India network with robust distribution infrastructure and top-quality global suppliers. Complete integrated business model run by professional and experienced management,” he added with an expectation of listing at Rs 265 apiece.

Adani Wilmar will be the seventh listed company of the Adani Group, which has already established itself as a brand in the FMCG sector. The company is a leader in branded edible oils and packaged foods in India.

The company reported tremendous growth over the past few years. Based on this we recommend investors stay invested for gains in the long term, said Aayush Agrawal, Senior Analyst, Swastika Investmart “We expect the shares to list at a decent premium.”


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