Shares of Adani Wilmar were listed at Rs 221 on BSE, a discount of 4 per cent over its issue price of Rs 230. However, the scrip surged more than 14 per cent to hit an intra-day high of Rs 252.45 on BSE.
On the National Stock Exchange (NSE), the counter was listed at a discount of little more than a per cent to Rs 227, compared to the mentioned issue price.
Most analysts are surprised by the negative debut of the company and said that a discounted listing of Adani Wilmar is a buying opportunity for investors.
Ajit Mishra, VP- Research, Religare Broking said that the company made a muted debut as the correction in broader market prevails. “Their valuations and subscription numbers were good for the issue,” he said.
It is a buying opportunity for investors as long as one gets its near IPO price. They should accumulate on dips for the long term, he added with a word of caution to look over market sentiments.
The company’s IPO was open for subscription between January 27 and 31, with a price band of Rs 218-230 apeice. Adani Wilmar is the seventh listed company of the Adani Group.
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.
Arafat Saiyed, Senior Research Analyst, Reliance Securities said that it is an opportune time to pick up the stock, if the investors have not received allotment. Those who have received the shares in the account, should hold them, he added.
“It is a long-term play as the company is a leading player in its segment with strong potential,” Saiyed said. “However, the only negative for the company is its lower margins, compared to the peers.”
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.
Adani Wilmar is a 50:50 joint venture between Gautam Adani’s Adani group and Singapore-based Wilmar group. It sells cooking oils and some other products under the Fortune brand.
Santosh Meena, Head of Research, Swastika Investmart said that Adani Wilmar debuted against the expectations, tracking the weak market sentiments.
“Those who applied for listing gain can maintain a stop loss of Rs 200 while long-term investors should hold it. New investors can also look at buying opportunities at initial weakness,” he added.
A day before listing, the Gautam Adani-led company was commanding a premium of Rs 22-25 in the unofficial market, merely 10 per cent over its issue price. The issue commanded a premium of Rs 100 earlier.
Akhil Rathi, Vice President Advisory, Marwadi Shares and Finance said, “It is available at a reasonable valuation as compared to its peers. At the current market price, long-term investors can add the stock to the portfolio.”
Adani Wilmar Limited is well-positioned to gain the expected growth in this industry due to its outstanding product mix, established brand name, robust distribution network, varied client base, and proven financial performance, he added.