Adani Wilmar IPO: Adani Wilmar shares are set to debut on the D-Street. It will list on both stock exchanges BSE and NSE on Tuesday. The BSE notice informed that effective from Tuesday, February 8, 2022, the equity shares of Adani Wilmar Limited shall be listed and admitted to dealings on BSE and NSE in the list of ‘B’ group of securities in special pre-open session. Ahead of share listing, Adani Wilmar share price has risen in the grey market.
Adani Wilmar IPO: Subscription Status
Adani Wilmar 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.
Adani Wilmar IPO: About the Company
Incorporated in 1999 as a joint venture between Adani Group and the Wilmar Group, Adani Wilmar Ltd (AWL) is an FMCG food company offering most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. The company’s portfolio of products spans across 3 categories: (i) edible oil, (ii) packaged food and FMCG, and (iii) industry essentials.
Adani Wilmar IPO: GMP
Experts 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. It means grey market is expecting this public issue to list at around Rs 260 ( Rs 230 + Rs 30), which is around 15 per cent higher from the price band of Rs 218 to Rs 230. Grey market is an unofficial market for unlisted securities. However, secondary market experts said that GMP is not an ideal indicator about the expected listing fain as it has nothing to do with the balance sheet of the company.
Adani Wilmar IPO: What do Experts Expect Ahead of Listing?
According to stock market experts, fundamentals of Adani Wilmar Limited are quite strong and its brands are easily available in the FMCG retail outlets. They said that one can expect ‘reasonable’ debut of Adani Wilmar shares and predicted up to 15 per cent listing premium. They said that Adani Wilmar shares may open at around Rs 250 to Rs 260 per equity share range.
“We can expect listing gains of around 10-15 per cent considering the GMP. One can hold on a long term basis as the issue is fully priced going with the brand name of Adani and the growth potential of this company,” said Manoj Dalmia, founder & director, Proficient Equities Limited.
Amarjeet Maurya, AVP – Mid Caps, Angel One Ltd., said: ” Adani Wilmar has received a good response from investors and oversubscribed around 17.4x times. We expect decent listing gain on back of lower valuation which is 37.6x TTM PE. Further, Adani Wilmar has a strong brand recall, wide distribution, a better financial track record, and healthy ROE.”
“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 per cent to its subscribers,” said Ravi Singh, Head of Research and Vice President at ShareIndia.