Adani Wilmar IPO: Adani Wilmar shares will debut on D-Street. On Tuesday, it trades on both stocks BSE and NSE. The BSE notice stated that with effect from Tuesday 8 February 2022, Adani Wilmar Limited’s shares will be listed and admitted to trade on BSE and NSE in the list of ‘B’ group of securities in a special pre-open session. Prior to the listing, Adani Wilmar’s share price has risen in the gray market.
Also Read: Adani Wilmar Share Price BSE, NSE: Share Jumps After Discount Listing; Buy, sell or hold?
Adani Wilmar IPO: Subscription Status
Adani Wilmar IPO attracted bids for 212.9 crore shares against the 12.3 crore shares on offer, a bid of 17.4 times, according to exchange data. The areas reserved for qualified institutional buyers (QIBs) and non-institutional investors (NIIs) were subscribed 5.7 times and 56.3 times respectively. The quota intended for retail investors was booked 3.9 times.
Adani Wilmar IPO: About the company
Founded in 1999 as a joint venture between Adani Group and the Wilmar Group, Adani Wilmar Ltd (AWL) is an FMCG food company offering most of the essential kitchen products for Indian consumers including edible oil, wheat flour, rice, pulses and sugar. The company’s product portfolio includes 3 categories: (i) edible oil, (ii) packaged foods and FMCG, and (iii) essential industrial products.
Adani Wilmar IPO: GMP
Experts said the company ordered a gray market premium (GMP) of Rs 30 ahead of listing on BSE and NSE, versus Rs 50 during this IPO. It means that the gray market expects this public offering to trade at around Rs 260 (Rs 230 + Rs 30), which is about 15 percent higher than the price range of Rs 218 to Rs 230. Gray market is an unofficial market for unlisted effects . However, secondary market experts said GMP is not an ideal indicator of expected listing as it has nothing to do with the company’s balance sheet.
Adani Wilmar IPO: What Do Experts Expect Before IPO?
According to stock market experts, Adani Wilmar Limited’s fundamentals are quite strong and its brands are easily available in the FMCG stores. They said one can expect a “reasonable” debut for Adani Wilmar shares and predicted a listing premium of up to 15 percent. They said Adani Wilmar shares could open at around Rs 250 to Rs 260 per share range.
“We can expect a listing gain of about 10 to 15 percent, taking into account the GMP. It can be sustained in the long run as the issue is fully priced in line with the Adani brand and the growth potential of this company,” said Manoj Dalmia, founder and director of Proficient Equities Limited.
Amarjeet Maurya, AVP – Mid Caps, Angel One Ltd., said: “Adani Wilmar has received good response from investors and is approximately 17.4x oversubscribed. We expect a decent quote gain from a lower valuation which is 37.6x TTM PE Furthermore, Adani Wilmar has a strong brand recall, broad distribution, a better financial track record and a healthy ROE.”
“The prospects for the FMCG industry look promising this year. From a fundamental perspective, Adani Wilmar shows a robust performance. However, market sentiments are currently not supportive, so we expect Adani Wilmar to offer a 5-10 percent listing gain to its subscribers,” said Ravi Singh, Head of Research and Vice President at ShareIndia.
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