Adani Wilmar Shares Surge 10% After Weak Listing
New Delhi: Shares of Adani Wilmar on Tuesday listed with a discount of nearly 4 per cent from the issue price -- at the upper band -- of Rs 230. On BSE, the stock got listed at Rs 221, a discount of 3.91 per cent. However, the edible oil major quickly witnessed buying in early deals and surged as much as 9.76 per cent from its issue price to hit an intraday high of Rs 252.45.
"The stock got listed at a discount owing to the weaker sentiments of the secondary market in the last few trading sessions. It is evident that investors who have subscribed the issue solely for listing gains would not be happy and can square off their positions in the range of Rs 255-260," said Likhita Chepa, Senior Research Analyst at CapitalVia Global Research.
"Short-term investors can hold the stock and book profits at 30 to 40 per cent i.e they can book profits at Rs 290 – 300. Long-term investors and investors looking to buy the stock on a listing day can consider holding/buying this stock given its wide distribution, healthy financials, strong brand recall, increasing reach, and household consumption. Its prospects appear to be optimistic over the long term," she added.
The IPO was open between January 27 and January 31 and it got subscribed over 17 times. The portion for retail investors was subscribed 3.92 times.
Adani Wilmar, which sells its cooking oils and other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar.
On the financial front, Adani Wilmar Ltd's revenue increased to Rs 24,957.28 crore for the six months ended September in the current fiscal, as against Rs 16,273.73 crore in the corresponding period of the previous year.
Apart from cooking oils, Adani Wilmar sells food products like rice, wheat flour and sugar. It also sells non-food products like soap, handwash and sanitisers.
Currently, seven Adani Group companies are listed on the domestic bourses.
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