Edible oil major Adani Wilmar Ltd (AWL) on Friday fixed a price band of Rs 218-230 a share for its Rs 3,600-crore initial public offering (IPO). The three-day initial share-sale will open for public subscription on January 27 and conclude on January 31. The bidding for anchor investors will open on January 25, according to the company.
AWL is a 50:50 joint venture company between Ahmedabad-based Adani group and Singapore’s Wilmar group. The company, which sells cooking oils under the Fortune brand, has cut its IPO size to Rs 3,600 crore from Rs 4,500 crore planned earlier. The public issue comprises fresh issue of equity shares and there will not be any secondary offering.
The IPO proceeds will be used for capital expenditure, repayment of debt and funding strategic acquisitions and investments. Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for the retail investors and the remaining 15 per cent for non-institutional investors. Investors can bid for a minimum of 65 equity shares and in multiples thereof.
AWL, which is among the leading food FMCG companies in India with revenues of Rs 37,195 crore, plans to aggressively look at M&A (merger and acquisition) prospects in the foods space. The company may acquire a brand or a company engaged in foods, staples and value added product categories.
Currently, six Adani group companies are listed on the domestic bourses. Apart from Adani Enterprises, other listed ones are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone. ICICI Securities, HDFC Bank, BNP Paribas, Kotak Mahindra Capital, JP Morgan, BofA Securities and Credit Suisse are the book running lead managers to the issue.