Second day to subscribe to Adani Wilmar’s IPO; GMP at ₹50 per share

Second day to subscribe to Adani Wilmar’s IPO; GMP at ₹50 per share
  • FMCG company Adani Wilmar has been subscribed 0.61 times on the first day of the IPO bidding process.
  • The company is looking to raise ₹3,600 crore through the IPO.
  • Shares of the company are currently demanding a premium of ₹50 in the grey market.
Today, January 28, is the second day to subscribe to Fast moving consumer goods (FMCG) company Adani Wilmar, known for edible oil ‘Fortune’, which has been subscribed 60% on the first day.

The IPO is a complete fresh issue of equity shares of ₹3,600 crore and no existing promoters or shareholders will be selling any shares.
Investor category Subscription
Qualified institutional buyers0.31 times
Non-institutional investors 0.57 times
Retail1.02 times
Overall0.61 times
Shares of the company are currently commanding a grey market premium (GMP) of 25%, which is ₹50 per share from the IPO price.

If you’re looking to invest in the IPO, here is what analysts are suggesting to IPO investors. Considering the company’s strong footing in edible oil business, wide distribution and future prospects, analysts recommend subscribing to the IPO.

“Adani Wilmar has strong brand recall, wide distribution, better financial track record and healthy returns on equity (ROE). Considering all the positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a subscribe rating on the issue,” said Amarjeet Maurya of Angel One.

Adani Wilmar is a joint venture between Adani Group and Singapore-based Wilmar, which was formed in 1999. It sells cooking oils under the Fortune brand as well as various other food products like rice and sugar.

Adani Wilmar will be the seventh Adani Group company to get listed on Indian exchanges as currently six Adani group companies are listed namely Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone.
Adani WilmarRevenueNet profit
FY21₹37,090 ₹727
FY20₹29,657 ₹460
FY19₹28,797 ₹375

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