Adani Wilmar Makes Tepid Market Debut, Surges 13% After Listing At Discount

Adani Wilmar shares made a tepid stock market debut as it opened for trading at Rs 227 per share on the National Stock Exchange, marking a decline of 1.3 per cent from its issue price of Rs 230 per share. On the BSE, Adani Wilmar opened for trading at Rs 221, marking a decline nearly 4 per cent from the issue price. However, Adani Wilmar shares witnessed buying interest at lower levels and rose as much as 13 per cent to hit high of Rs 249 on the BSE.

"Tepid listing of Adani Wilmar can be attributed to weak market sentiments otherwise fundamental and valuations were good for this IPO. Those who applied for listing gain can maintain a stop loss of 200 while long-term investors should hold it. New investors can also look at buying opportunities at initial weakness," said Santosh Meena, head of research at Swastika Investmart.

Adani Wilmar, the maker of popular edible oil brand Fortune, sold shares in the price band of Rs 218-230 per share during the share sale through initial public offering (IPO) which ended on January 31. Adani Wilmar IPO was subscribed 17.37 times by the last day of subscription, data from stock exchanges showed.

Adani Wilmar shares were in very high demand among the non-institutional investors which include high net worth individuals. The portion reserved for them was subscribed over 50 times.

Retail investors also participated in large numbers in the IPO as portion set aside for them was subscribed 33 times and portion set aside for qualified institutional buyers was subscribed 5.73 times.

Adani Wilmar raised Rs 3,600 crore through the IPO. A retail investor was allowed to bid for minimum one lot of 65 shares upto maximum of 13 lots. At the upper price band, one lot of Adani Wilmar shares cost Rs 14,950.

The Ahmedabad-based Adani Wilmar, is a joint venture between Adani Group and the Wilmar Group. The company is an FMCG company engaged in manufacturing edible oil, wheat flour, rice, pulses, and sugar.

The company markets popular edible oil brand Fotune, which is the country's largest selling edible oil brand.  Recently the company has focused on value-added products and has launched products such as edible oil products, rice bran health oil, fortified foods, ready-to-cook soya chunks, khichdi, etc in line with this. The company has strong raw material sourcing capabilities and was India's largest importer of crude edible oil as of March 31, 2021.