Adani Wilmar IPO: Opens today; key details that an investor must know before investing

Adani Wilmar's Initial Public Offering is set to open today, i.e., Thursday, January 27, 2022. The issue will close on Monday, January 31, 2021.

The company aims to raise up to Rs 3,600 crore through fresh issues of shares during a three-day period. The price band is set around Rs 218-230 per share. The company is providing a discount of Rs 21 per Equity Share for Eligible Employees.

Retail investors can bid for a minimum of 65 equity shares and in multiples of 65 shares thereafter. This means, retail investors can make a minimum investment of Rs 14,950 per lot, and the maximum investment would be Rs 1,94,350 for 13 lots as they are allowed to invest up to Rs 2 lakh in the IPO.

Half the offering is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

The issue aims to mobilise the net proceeds from the issue to fund:

♦    Capital expenditure: Rs 1,900 crore

♦    Pay borrowings: Rs 1,059 crore

♦    Funding strategic acquisitions and investments: Rs 450

♦    General corporate purposes

Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited, ICICI Securities Limited, HDFC Bank Limited and BNP Paribas are the Book Running Lead Manager for the issue while Link Intime India Private Limited is its registrar. The company has scaled down the offering size from Rs 4,500 crore to Rs 3,600 crore ahead of the IPO.

Adani Wilmar Ltd (AWL), Incorporated in 1999 as a joint venture between Adani Group and the Wilmar Group, is an FMCG food company offering most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar.

It aims to launch edible oil products, rice bran health oil, fortified foods, ready-to-cook soya chunks, and more as part of its future strategy.

The company has 22 manufacturing facilities across the 10 states of the country, including 10 crushing units and 18 refineries. Its Mundra refinery is India's largest single-location refinery.