Adani Wilmar IPO Review

Adani Wilmar with Fortune Oil as flagship brand is coming up with IPO. It a wide array of packaged foods, including edible oil, wheat flour, rice, pulses, besan, soya chunks, ready-to-cook khichdi and sugar. Fortune Oil is the largest selling oil brand in India (Source: Technopak Report). It also offer personal hygiene products, including soaps, handwash and sanitizers, and various industry essentials, including oleochemicals, castor oil and its derivatives and deoiled cakes.

IPO Details

IPO opens onJan 27, 2022
IPO ends onJan 31, 2022
Face valueRs 1 per equity share
IPO PriceRs 218 to 230 per share
Fresh issue amountRs 3600 Cr
Offer for sale0
Market Lot Size65 shares
Max lots per retail investor13 lots (Rs 194350 assuming higher band price)
Subscription statusNSE Adani Wilmar IPO

Pre and Post IPO Valuation

Outstanding equity share prior to offer1142948860 Equity Shares
Pre-IPO Market cap
(assuming higher band price)
Rs 26287 Cr
Post-IPO Market cap
(assuming higher band price)
(Pre-IPO Market cap + Fresh Issue)
Rs 29887 Cr

Sales and Profit/Loss data

Here is Adani Wilmar’s revenue/sales and net profit data in INR Crores

Sep 30 2021 (6 months)Sep 30 2020 (6 months)Mar 31 2021 (1y)Mar 31 2020 (1y)Mar 31 2019 (1y)
Total Revenue2495716273371952976628919
Net profit357288727460375
Revenue growth53%25%3%

Is Company valuation justified

Adani Gilmar is large cap company and its post IPO market cap is Rs 29887 Cr. at the upper band of IPO price and its total sale is Rs. 37195 Cr in 2020-21. Considering the company is in FMCG segment with primary product being Oil, the ratio of Market cap to Total revenue is pretty healthy.

Final Conclusion

Considering reasonable valuation and the grey market premium of Rs ~30 or so, there is a reasonable possibility that investors can gain approx 0-30% as listing gain.

Also see: Review video