Adani Wilmar IPO (initial public offering) saw a strong investor response on the second day of the bidding process and was fully subscribed. Today, January 31, 2022, is the last bidding day for the Adani Wilmar IPO. The Adani Wilmar IPO is a complete fresh issue of equity shares of Rs 3,600 crore and no existing promoters or shareholders will be selling any shares.
Adani Wilmar IPO: Subscription Status
On day 2, the Adani Wilmar issue was subscribed 1.13 per cent on Day 2. It saw applications for 13,85,77,270 shares so far against the total issue size of 12,25,46,150 shares. The company has reserved equity shares aggregating to Rs 107 crore for eligible employees, who will get a discount of Rs 21 per share during the bidding process.
Adani Wilmar IPO: GMP
As per the market observers, shares of Adani Wilmar are available at a premium of Rs 40 in grey market today, which is Rs 5 lower from is yesterday’s grey market premium of Rs 45. They said that after two days of bidding, grey market and subscription status suggests that despite negative market sentiments, Adani Wilmar IPO GMP has remained steady at around Rs 40 to Rs 45 for the last 3 days, which is good for the IPO. They said that Adani Wilmar shares made its debut at around Rs 65 in the grey market which means it may list at around Rs 65 premium in bulls’ case while in bears’ case it may give around Rs 40 premium to its bidders.
Adani Wilmar IPO: Should you Subscribe?
If you’re looking to invest in the IPO, here is what analysts are suggesting to IPO investors. Considering the company’s strong footing in the edible oil business, wide distribution, and future prospects, analysts recommend subscribing to the IPO.
Adani Wilmar is one of the few large FMCG companies in India that offers most of the primary kitchen commodities like edible oil, wheat flour, rice, pulses, and sugar. “The company has differentiated and diversified product portfolio with market-leading brands. Also, the company is one of India’s leading consumer product companies with leadership in edible oil and packaged food business along with strong raw material sourcing capabilities & integrated business model with well-established operational infrastructure and strong manufacturing capabilities,” Hem Securities said. The brokerage has assigned a “subscribe” rating to the public issue.
Analysts at Ventura Securities have a ‘Subscribe’ rating on the issue with a 24-month price target of Rs 468.8 per share (48.6X FY24 earnings) representing an upside potential of 103.8 per cent from the issue price upper band at Rs 230/share. The brokerage firm believes that Adani Wilmar is a proxy play on the high growth underpenetrated packaged foods segment.
At the end of the previous fiscal year, the ROCP market share of Adani Wilmar’s branded edible oil was 18.30 per cent, putting it as the dominant number 1 edible oil brand in India. Analysts added that ‘Fortune’, the well-known flagship brand, is the largest selling edible oil brand in India. “In terms of the valuations, on the higher price band, AWL demands a P/E multiple of 41.8x based on H1FY22 post-issue fully diluted EPS vs industry average of 65x. Considering, AWL’s strong brand recall, wide distribution, better financial track record and healthy ROE, we have a positive view for the IPO,” they added.
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