Adani Wilmar IPO: All you need to know

Blog | IPO

When you go to a grocery store or a supermarket, you will find packs of edible oil, wheat flour, rice and pulses under the brand name ‘Fortune’. Now, along with being a consumer of these Fortune brand products, you can also be a shareholder in this company. Adani Wilmar, which operates under the brand name Fortune, is all set to launch its public issue to raise money from the equity markets. 

Incorporated in 1999, it is a 50:50 joint venture between the conglomerate Adani Group and Asia’s leading agribusiness group Wilmar Group. It is one of the largest fast-moving consumer goods companies in India and offers a wide range of kitchen essential commodities.

 Offer details 

  • Start date: 27 January 2021 
  • End date:  31 January 2021
  • Price band: ₹218-₹230
  • Minimum investment: ₹14,950
  • IPO size: ₹3,600 crore

Timeline

  • Allotment: 3 February 2021
  • Refund: 4 February 2021
  • Credit of equity shares: 7 February 2021
  • Listing: 8 February 2021

All about the IPO 

 The Adani Group’s joint venture brand, Fortune, is visible in most Indian households. According to a market research and consultancy firm, Fortune brand is present in one out of three households in India. In fact, it is ranked as the number 1 edible oil brand with a market share of 18.3%.  In FY21, the edible oil business accounted for around 65% of the joint venture’s sales volume. 

Besides holding a dominant presence in the edible oil market, Adani Wilmar also operates in the industry essentials and FMCG segments. It offers a wide range of industry essentials including oleochemicals, castor oil and de-oiled cakes. Under its FMCG segment, it sells various products including wheat flour, rice, soya nuggets, pulses, besan, etc. 

Further, it is also going direct-to-consumer with premium products such as ready-to-cook khichdi. 

 Financials

Revenue: 13%; Net profit: 39% (FY19-21 CAGR)

Strengths 

  • Strong brand recall across a range of price points 
  • Has a market share that is 3x of its nearest competitor in the branded edible oil market 
  • Pan-India network with 5,566 distributors catering to 16 lakh retail outlets in India
  • Strong parentage with professional management and experienced board
  • One of the fastest growing consumer companies with profit CAGR of 39% between FY19-21 

Risks

  • Unfavourable domestic and global weather condition may impact the availability of raw material
  • Rising commodity prices could dent the earnings 
  • Dependence on its edible oil products for a significant portion of the revenue 

Good to know

The edible oil is an important product in any Indian household. Over the next five year, the edible oil retail market is expected to grow at a CAGR of 6% to ₹2.4 lakh crore. This is expected to be beneficial for Adani Wilmar as its Fortune brand is a dominant player in this space. 

FAQs 

How can you pre-apply for Adani Wilmar’s IPO? 

Pre-applying for Adani Wilmar’s IPO means applying for this public issue before it goes live. Click here and follow these steps to pre-apply for Adani Wilmar’s IPO on Upstox. 

When does pre-apply for Adani Wilmar’s IPO open and how can you pay for it?

You can pre-apply for Adani Wilmar’s IPO from 25 January 2022. Once the IPO goes live, you will receive a UPI mandate. Accept this to block the IPO application amount and successfully place your bid.

How can you apply for Adani Wilmar’s IPO? 

Click here to apply for Adani Wilmar’s IPO on Upstox. You can also download our app. Then click here and follow these steps. 

When does Adani Wilmar’s IPO open and close for the subscription? 

Adani Wilmar’s IPO is open for subscription between 27 January 2022 and 31 January 2022. 

What’s the lot size and minimum investment needed for Adani Wilmar’s IPO? 

The lot size for Adani Wilmar’s IPO is 65 shares and the minimum investment required is ₹14,950. 

What is the price band for Adani Wilmar’s IPO?

The price band for Adani Wilmar’s IPO is ₹218-₹230 per share.  

What’s the size of Adani Wilmar’s IPO?

The size of Adani Wilmar’s IPO is ₹3,600 crore. 

How many bids can I place for Adani Wilmar’s IPO? 

You can place up to three bids for an application. 

Can these bids be placed at different times during the IPO subscription period?

No, the bids have to be placed at one go. If you want to add an additional bid, then you would have to delete your application and re-apply. 

When will Adani Wilmar’s shares be credited to your demat account? 

If the shares are allotted, then they will be credited to your demat account on 7 February 2022. Click here and follow the steps to check the allotment status. 

Which exchanges will Adani Wilmar list on?

Shares of Adani Wilmar will list on BSE and NSE.

When will Adani Wilmar list on the exchanges? 

Shares of Adani Wilmar will list on 8 February 2022  

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