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All that you should know about the Company before applying for the IPO.

January 25, 2022     

The public issue of equity shares of Adani Wilmar Limited opens for subscription on January 27, 2022 and closes on January 31, 2022. It is expected to list on the stock exchanges on February 08, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Incorporated in 1999 as a joint venture between the Adani Group and the Wilmar Group (one of Asia’s leading agribusiness groups), the company is one of the few large FMCG food companies in India to offer most of the primary kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. Commodities, such as edible oils, wheat flour, rice, pulses and sugar, account for approximately 66% of the spend on primary kitchen commodities in India. It offers a range of staples such as wheat flour, rice, pulses, and sugar. Its products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups. Its portfolio of products spans across three categories: (i) edible oil, (ii) packaged food and FMCG, and (iii) industry essentials.

A significant majority of its sales pertain to branded products accounting for approximately 73% of its edible oil and food and FMCG sales volume for the financial year 2021. Currently, it has 22 plants in India which are strategically located across 10 states, comprising 10 crushing units and 19 refineries. Out of the 19 refineries, 10 are port-based to facilitate use of imported crude edible oil and reduce transportation costs, while the remaining are typically located in the hinterland in proximity to raw material production bases to reduce storage costs.

It operates an integrated manufacturing infrastructure to derive cost efficiency across its different business lines. The company’s integration includes the following means: (i) backward and forward integration. It has the largest distribution network among all the branded edible oil companies in India.

As of March 31, 2021, the company products were present in one out of three households in India with a household reach of 90.51 million through Fortune brand. As of September 30, 2021, it had 5,590 distributors in India located in 28 states and eight union territories, catering to over 1.6 million retail outlets. These retail outlets represent 139, approximately 35% of the retail outlets in India.

Who are the Promoters of the Company?

Adani Enterprises Limited, Adani Commodities LLP, and Lence Pte. Ltd.

Positives about the Company

  • Diversified product portfolio with leading brands catering to most daily essentials of kitchen spends across India.
  • Strong brand recall and broad customer reach.
  • Leadership in branded edible oil and packaged food business in India.
  • One of the largest basic oleochemical manufacturers of India.
  • Strong raw material sourcing capabilities from top global suppliers.
  • An integrated business model with well-established operational infrastructure and strong manufacturing capabilities.
  • Pan-India distribution network supported by a robust distribution infrastructure.
  • Focus on environmental and social sustainability.
  • Professional management and experienced board.

Who are its key competitors?

  • Hindustan Unilever Limited
  • Britannia Industries Limited
  • Tata Consumer Products Limited
  • Dabur India Limited
  • Marico Limited
  • Nestle India Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Funding capital expenditure for expansion of existing manufacturing facilities and develop-ing new manufacturing facilities
  • Repayment/prepayment of borrowings
  • Funding strategic acquisitions and investments
  • General corporate purposes

IPO Details

IPO Size ₹ 3,600 Crore
Offer Mix 100% Fresh Issue
Price Band ₹ 218 - ₹ 230
Lot Size 65 Shares (& in multiples thereof)
Face Value ₹ 1
Application Amount Min. ₹ 14,950 (1 lot) | Max. ₹ 1,94,350 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Link Intime India Private Limited
Discount ₹ 21 per equity share for Eligible Employees Category only
Cut-off time for UPI Mandate Confirmation 01-Feb-2022 (up to 12:00 PM)

Category Wise Availability

QIB ₹ 1,566.50 Crore
(50% of Net Issue)
NIB ₹ 469.95 Crore
(15% of Net Issue)
Retail ₹ 1,096.55 Crore
(35% of Net Issue)
Eligible AEL Shareholders Portion* ₹ 360 Crore
Employee Reservation Portion ₹ 107 Crore
*Holding AEL (Adani Enterprise Limited) shares as on January 19, 2022.

Indicative Issue Timeline

Activity Date
IPO Opens January 27, 2022
IPO Closes January 31, 2022
Finalization of the basis of allotment February 03, 2022
Unblocking of funds / Initiation of refunds February 04, 2022
Credit of equity shares to Demat accounts February 07, 2022
Listing of equity shares February 08, 2022
Source: Company RHP
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