Adani Wilmar IPO Opens Today: Should you subscribe?

Adani Wilmar’s initial public offering will open for subscription today, January 27, 2021. The company has fixed the price band at Rs 218 to Rs 230 a share for its public issue through which it has aimed to raise up funds to Rs 3,600 crore. The edible oil major ‘Adani Wilmar’ on 25 Januar(Tuesday) said the company has garnered Rs 940 crore from anchor investors.

The company has trimmed its issue size with a difference of 900 crore to Rs 3,600 crore from Rs 4,500 crore earlier.

According to observers, ‘Adani Wilmar’ shares premium (GMP) are available at Rs 44 in the grey market today- as per sources.

Key strengths of Adani Wilmaris are its market-leading position in the industry, strong raw material sourcing capabilities, and its integrated business model with well-established operational infrastructure and strong manufacturing capabilities.
Despite its position, there reside risks from government policies and regulations that are unfavorable and the difficulty in expanding comany business in food and FMCG.

The edible oil business of Adani is likely to have a secular growth trend, as per analysis and prediction but there is a huge untapped market for its food and FMCG business segment.

Thus considering analysis and observations, the brokerage assigns a subscribe rating for the issue- as sources said.

The company Adani Wilmar is a joint venture between the ‘Adani Enterprises’ and the global ‘Wilmar Group’. This is among the large FMCG (fast-moving goods and carriage) food companies in India. Its has expansion under three categories: edible oil, FMCG and packaged food, industry essentials.
It spans -edible oil, wheat flour, sugar, rice, pulses. ‘Fortune’ is the largest selling edible oil of Adami in the country.