Adani Wilmar Sets Offer For Sale Floor Price At Rs 275 Per Share

Adani Wilmar Ltd. announced on Thursday that its founder will be selling a stake in the company through an offer-for-sale. The OFS will open for non-retail investors on Jan. 10 and for retail investors on Jan. 13.

Adani Commodities Ltd., the Adani Group promoter entity of Adani Wilmar, will sell a 13.5% stake or 17.54 crore shares, in the company through this OFS, according to an exchange filing. This is the base issue size.

The company has set its offer-for-sale floor price at Rs 275 per share.

Additionally, the company will also have a green shoe option to sell another 6.5% stake in the OFS.

The offer shall take place over two trading days on a separate window of the stock exchanges on Jan. 10 and Jan. 13 from 9:15 a.m. to 3:30 p.m. on both days.

Only non-retail investors shall be allowed to place their bids on Jan. 10. The offer will continue to take place during trading hours in a separate window on the stock exchange on Jan. 13.

Up to 8,44,79,110 equity shares, representing 6.50% of the total issues and paid-up equity share capital of the company as of Jan 9. The seller will intimate the stock exchanges of its intention to exercise the oversubscription option after the trading hours on Jan. 10, the exchange filing said.

Antique Stock Broking Ltd., ICICI Securities Ltd., Jefferies India Pvt. Ltd., Nuvama Wealth Management Ltd., and SBICAP Securities Ltd. are the seller's brokers. While Jefferies India Pvt. Ltd. will act as the settlement broker for the offer on behalf of the seller's brokers.

Earlier on Dec. 30, Adani Enterprises Ltd. announced that it will exit Adani Wilmar Ltd. by divesting its entire 44% stake in the joint venture Adani Wilmar Ltd. that will raise over $2 billion.

Adani Enterprises will divest 13% of its shares in Adani Wilmar to achieve compliance with minimum public shareholding requirements via an offer for sale. In addition, Wilmar International Ltd. has agreed to acquire the 31% stake held by the Adani flagship in the edible oil maker.

As of the September quarter, Adani Commodities held a 43.94% stake in the company, while Lence Pte., a unit of Wilmar International, has the remaining 43.94% stake.

Adani Wilmar's stock closed 0.83% lower at Rs 323.45 apiece, compared to a 0.69% decline in the benchmark NSE Nifty 50 on Thursday.

Two out of the five analysts tracking the company have a 'buy' rating on the stock, two suggest a 'hold,' and one has a 'sell,' according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 12.3%.

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