Another Adani group company, Adani Wilmar, is set to hit the Indian bourses with its Rs. 5000 crore IPO. As per sources privy to the development, the company that owns Fortune brand of edible oils has started work on its initial share sale plan and appointed legal advisers and investment banks.
One of the source referred above, requesting anonymity, said JP Morgan and Kotak Mahindra Capital have been appointed for managing the IPO. "They have started work on the draft red herring prospectus", he added.
The joint venture (JV) between Adani Enterprises Ltd and Wilmar International Ltd is aiming to mop up funds via issuance of new shares as well as sale of shares held by both the joint venture companies, said the person. "But these are still under discussion, and the numbers could change closer to the filing of the IPO papers."
Post successful launch of the IPO, this will be the seventh Adani Group company to be listed on the Indian exchanges. Other listed companies of the group include Adani Enterprises, Adani Ports and Special Economic Zones Ltd, Adani Transmission Ltd, Adani Power Ltd, Adani Total Gas Ltd and Adani Green Energy Ltd.
"It is one of the bigger and mature businesses in the group that is still unlisted. Taking it public will result in significant value unlocking," said the second person cited above.
For the nine months ended December 31, 2020, the company reported 18% growth in revenue to Rs. 26,486 crore. Operating profit also grew during the same period to Rs. 1050 crore. And during the December ended quarter of FY21, the revenue surged 31% to Rs. 10267 crore owing to economic rebound post the disruption induced by the pandemic.