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  5. Adani Wilmar stock jumps 5% after flagship firm demerges food-FMCG business

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Adani Wilmar stock jumps 5% after flagship firm demerges food-FMCG business

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By Press Trust of India (PTI)

2 min read | Updated on August 02, 2024, 12:24 IST

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SUMMARY

Adani Wilmar’s scrip climbed 4.82% to trade at ₹365.15 apiece on the National Stock Exchange (NSE), and it rallied 4.61% to ₹364.25 per piece on the BSE on Friday. This was preceded by an announcement by the group's flagship firm, Adani Enterprises, that it will demerge its food-FMCG division.

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Adani Wilmar's revenue from the edible oil business grew 8% to ₹10,649 crore in the April-June quarter of this fiscal year.

Adani Wilmar's revenue from the edible oil business grew 8% to ₹10,649 crore in the April-June quarter of this fiscal year.

Adani Wilmar shares jumped 5% on Friday in the morning trade after the group's flagship firm Adani Enterprises announced that it will demerge its food-FMCG division and also its strategic investments in Adani Commodities LLP to edible oil major.

The company's scrip climbed 4.82% to trade at ₹365.15 apiece on the National Stock Exchange (NSE).

On the BSE, shares of Adani Wilmar rallied 4.61% to ₹364.25 per piece.

The BSE Sensex benchmark slumped 715.41 points, or 0.87%, to trade at 81,152.14, while the 50-share NSE Nifty slipped 218.15 points, or 0.87%, to 24,792.75.

Adani Enterprises Ltd will demerge its food-FMCG division and its strategic investments in Adani Commodities LLP to edible oil major Adani Wilmar Ltd as part of the strategy to give greater focus to this business and unlock value for shareholders.

Adani Wilmar is an equal joint venture between Adani Group and Singapore's Wilmar Group. Adani Commodities and Wilmar hold 43.94% stakes each in the company. The remaining 12% stake is with the public.

Post this demerger, Adani Wilmar, which sells edible oils and other food products under the Fortune brand, will cease to be the joint venture entity of Adani Enterprises Ltd. Promoters stake in Adani Wilmar Ltd. will come down to 76.76% from the current 87.87%.

In a regulatory filing on Thursday, Adani Wilmar informed that the board has approved a 'Scheme of Arrangement' amongst Adani Enterprises Ltd. (the demerged company) and Adani Wilmar (the resulting company) and their respective shareholders and creditors.

Also read: Adani Enterprises Q1 Results Highlights: Net profit rises 115.8% to ₹1,454.5 crore, revenue up 12.4%

On Monday, Adani Wilmar Ltd reported a consolidated net profit of ₹313.20 crore for the first quarter of this fiscal on higher revenue from cooking oils and other food-FMCG products.

The company had posted a net loss of ₹78.92 crore in the year-ago period.

The total income rose to ₹14,229.87 crore during the April-June period this fiscal from ₹12,994.18 crore in the corresponding period of the previous year.

Adani Wilmar's revenue from the edible oil business grew 8% to ₹10,649 crore in the April-June quarter of this fiscal year from ₹ 9,845 crore in the year-ago period.

Food and FMCG business revenue rose 40% to ₹1,533 crore from ₹1,097 crore. The revenue of the industry essentials segment was flat at ₹1,986 crore.

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Press Trust of India (PTI) is India's premier news agency.

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