Adani Wilmar IPO: All you need to know

Adani Wilmar IPO, the seventh of the port-to-power conglomerate Adani Group's companies, is expected to debut the markets Thursday, January 27. The IPO worth over Rs 36 billion will close on January 31.

The company had cut its issue size ahead of the IPO from Rs 45 billion, which will optimise the issue size. Here's everything investors need to know about the Adani Wilmar IPO.

Face value: Rs 1

Price band: Rs 218-230

Fresh issue: 100%

Offer for sale: 0%

Bid lot: 65 shares and multiples thereof. Retail investors can apply for a maximum of 13 lots

Listing: BSE, NSE

Industry: Edible oil

Quota: Retail - 35 percent, QIB - 50 percent, NII - 15 percent

Allotment date: February 3, 2022

Listing date: Feburary 8

Adani Wilmar is a joint venture between Adani Enterprises and the global Wilmar Group.

It is one of the few large FMCG food companies in India. Its portfolio spans three categories: edible oil, FMCG and packaged food, industry essentials.

It caters to essential kitchen requirements like edible oil, wheat flour, sugar, rice, pulses. It also offers a range of industry essentials and de-oiled cakes. Its brand 'Fortune' is the largest selling edible oil brand in the country.

It aims to launch edible oil products, rice bran health oil, fortified foods, ready-to-cook soya chunks, and more as part of its future strategy.

It has 22 manufacturing facilities across the 10 states of the country, including 10 crushing units and 18 refineries. Its Mundra refinery is India's largest single-location refinery.

The issue aims to mobilise the net proceeds from the issue to fund:

Capital expenditure - Rs 1,900 crore

Pay borrowings - Rs 1,059 crore

Funding strategic acquisitions and investments - Rs 450

General corporate purposes

The company reported revenue growth of 13.5 percent to Rs 37,090 crore in FY21. Its EBITDA grew at a CAGR of 8.2 percent to Rs 1,325 crore, during the period under consideration. And its PAT grew at 39.2 percent to Rs 728 crore. EBITDA margin contracted by over 40 basis points to 3.6 percent due to higher input costs. But its PAT margin expanded by 70 basis points to 2 percent.

The shares of Adani Wilmar were trading at a grey market premium (GMP) of Rs 50 ahead of the IPO, indicating that the unofficial market expects the shares to list at Rs 280, from the upper end of the price band. The GMP of the stock has declined from the highs of Rs 170 to Rs 50 in the few trading sessions.