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Adani Wilmar Shares To Debut On Bse, Nse Today; Here’S What Gmp Suggests

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Adani Wilmar shares are set to debut on stock exchanges BSE and NSE on Tuesday, February 8. The IPO of Adani Wilmar — 50:50 joint venture between the Adani Group and Singapore’s Wilmar Group — was open for bidding from January 27 to January 31, and subscribed more than 17 times the shares on offer. Adani Wilmar, an edible oil company, commanded a premium in the grey market ahead of its debut on Dalal Street.

Dealers said the company commanded a grey market premium (GMP) of Rs 30 prior to the listing on BSE and NSE, as against Rs 50 during this IPO. Grey market is an unofficial market for unlisted securities.

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Adani Wilmar GMP

Date GMP (in rupees)
Feb 8 30
Feb 7 30
Feb 6 30
Feb 5 35
Feb 4 40
Feb 3 40
Feb 2 30
Feb 1 30
Jan 31 30
Jan 30 40
Jan 29 40
Jan 28 50
Jan 27 50

(Source: IPO Watch)

“Adani Wilmar’s listing should be reasonable with a premium of over 15 percent over the issue price… The company’s strong parentage and pan-India distribution network are the factors that may attract investors,” Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities, told CNBCTV18.com.

“The Adani Wilmar IPO got a moderate response owing to the global sell-off and dampened sentiments in the primary market. The pricing looked moderate,” he said.

Adani Wilmar’s IPO attracted bids for 212.9 crore shares as against the 12.3 crore shares on offer, a subscription of 17.4 times, according to exchange data. The portions reserved for qualified institutional buyers (QIBs) and non-institutional investors (NIIs) were subscribed 5.7 times and 56.3 times respectively. The quota meant for retail investors was booked 3.9 times.

“The FMCG sector outlook seems very promising this year. From a fundamental perspective, Adani Wilmar is showing a robust performance. However, market sentiments are not supporting right now so we expect Adani Wilmar to offer a listing gain of 5-10 percent to its subscribers,” said Ravi Singh, Head of Research and Vice President at ShareIndia.

Mohit Nigam, Head-PMS at Hem Securities, expects Adani Wilmar shares to start the first day of trade at a premium of around 15 percent over the issue price.

Adani Wilmar aims to use the IPO proceeds to fund capex, prepayment/repayment of borrowings, strategic acquisitions and investments, and for general corporate purposes, according to its draft red herring prospectus (DRHP).

Ahead of the IPO, Adani Wilmar said it had raised Rs 940 crore from anchor investors, by allocating shares at Rs 230 apiece.

First Published:  IST

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