Adani Wilmar To Exercise Oversubscription Option In Offer For Sale To Exit FMCG Joint Venture

The offer for sale of Adani Commodities Ltd., the Adani Group promoter entity of Adani Wilmar Ltd., was oversubscribed on Jan. 10, and the company is going to exercise the oversubscription offer to the extent of 1.96 lakh shares, representing 1.51%, in addition to the 17.54 lakh shares of the total issue.

Adani Wilmar Ltd.'s offer for sale was subscribed 111.19% as of 3:30 p.m., according to data on exchanges. The non-retail portion of the OFS closed on Jan. 10, while the retail portion opened on Jan. 13 during market hours.

Adani Commodities was selling 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.

On Thursday, the company had set its offer-for-sale floor price at Rs 275 per share. The company will intimate the stock exchanges of its intention to exercise the oversubscription option today itself, the exchange filing said.

Antique Stock Broking Ltd., ICICI Securities Ltd., Jefferies India Pvt., Nuvama Wealth Management Ltd., and SBICAP Securities Ltd. are the seller's brokers. While Jefferies India Pvt. 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.

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