Adani Enterprises to fully exit Adani Wilmar JV, invest stake sale proceed in core infrastructure

Adani Enterprises Ltd (AEL) on Monday said it would completely exit its 44% stake in Adani Wilmar Ltd, raising an estimated $2 billion in the process.

Under an agreement signed between Adani Commodities LLP (ACL), a wholly-owned subsidiary of AEL, and Lence Pte Ltd, a subsidiary of Wilmar International Ltd, Lence will acquire ACL’s 31.06% stake in Adani Wilmar.

Adani Enterprises, the flagship company of the Adani Group, will divest another 13% stake in Adani Wilmar to meet minimum public shareholding requirements, leading to its complete exit from the joint venture, the company said in a statement.

"With this, AEL will fully exit Adani Wilmar Ltd," it said.

Adani, however, did not give the price at which it was selling the stake.

As of December 27, Adani Wilmar’s market capitalisation stood at ₹42,785 crore (USD 5 billion).

The board of AEL has also accepted the resignation of ACL’s nominee directors from the board of Adani Wilmar, and steps will be taken to rename the company, the statement added.

The transaction is likely to conclude before March 31, 2025.

The move marks the first equity fundraising for AEL after US-based short seller Hindenburg accused the Adani Group of corporate fraud.

Promoters of Adani Wilmar, which markets the popular Fortune brand of edible oils and staples, currently hold an 87.87% stake in the company. To comply with local regulations requiring a minimum 25% free float, the promoters’ stake will be reduced to 75%. Both Adani and Wilmar currently hold an equal 43.94% stake in the joint venture.

Adani Enterprises plans to utilise the sale proceeds to boost investments in its core infrastructure platforms, spanning energy, utilities, transport, and logistics.

"AEL will continue to invest in infrastructure sectors which will further strengthen AEL’s position as India’s largest listed incubator of platforms playing the key macro themes underpinning India’s growth story," the statement read.