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
| Promoters | ADANI ENTERPRISES LIMITED, ADANI COMMODITIES LLP AND LENCE PTE. LTD. |
| IPO opens on | Jan 27, 2022 |
| IPO ends on | Jan 31, 2022 |
| Face value | Rs 1 per equity share |
| IPO Price | Rs 218 to 230 per share |
| Fresh issue amount | Rs 3600 Cr |
| Offer for sale | 0 |
| Market Lot Size | 65 shares |
| Max lots per retail investor | 13 lots (Rs 194350 assuming higher band price) |
| Subscription status | NSE Adani Wilmar IPO |
Pre and Post IPO Valuation
| Outstanding equity share prior to offer | 1142948860 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 Revenue | 24957 | 16273 | 37195 | 29766 | 28919 |
| Net profit | 357 | 288 | 727 | 460 | 375 |
| Revenue growth | 53% | 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
