FMCG corporation Adani Wilmar, which tends to make edible oil ‘Fortune’, has filed a draft red herring prospectus (DRHP) with marketplace regulator Sebi to launch Rs 4,500-crore IPO. Adani Wilmar, a joint venture involving Adani Group and Singapore-based Wilmar, was formed in 1999. It sells cooking oils below the Fortune brand as nicely as a variety of other meals items like rice and sugar. Adani Enterprises in a BSE filing stated that the proposed listing of Adani Wilmar Ltd on the stock exchanges will comprise an IPO in the type of fresh concern of new equity shares by AWL for an quantity of up to Rs 4,500 crore. “There will not be any secondary offering,” it added.
Adani Wilmar has planned to utilise the net proceed from the IPO to fund capital expenditure for expansion of AWL’s current manufacturing facilities and creating new manufacturing facilities worth Rs 1,900 crore repayment/prepayment of borrowings worth Rs 1,170 crore to fund strategic acquisitions and investments worth Rs 500 crore and for basic corporate purposes.
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The corporation has also stated that the proposed listing is intended to additional the development of AWL’s operations by escalating its marketplace visibility and awareness amongst present and possible prospects. Kotak Mahindra Capital Company, J.P.Morgan India Private Ltd, BofA Securities India, Credit Suisse Securities (India) Private Ltd, ICICI Securities, HDFC Bank, BNP Paribas are book operating lead managers to the isue. Kin Intime India Private Ltd will be the registrar to the concern.
Upon profitable completion of its IPO, Adani Wilmar will join the likes of Hindustan Unilever Ltd (HUL), Britannia Industries, Tata Consumer Products, Dabur India, Marico and Nestle India. The sector peer group typical P/E ratio stands at 66.53x, and the weighted typical return on net worth for the last 3 fiscals stood at 19.97 per cent. “As there is no assurance that the Proposed Listing will proceed, shareholders and potential investors are advised to exercise caution when dealing with the securities of the company,” Adani Enterprises stated.
Currently, six Adani Group firms are listed on stock exchanges. Apart from Adani Enterprises, other listed ones are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone. Adani Wilmar has some of the marquee clientele in the item categories. It is the biggest manufacturer of Stearic acid and Glycerine in India. Also, it is one of the biggest suppliers of the soap noodles in India. Major clientele of the corporation incorporate polymer additives players like Fine Organics and Baerlocher, home & private care firms HUL, Unilever Sri Lanka and Reckitt Benckiser.