Adani Wilmar Limited IPO : Issue opens 27th Jan 2022
Incorporated in 1999 as a joint venture between Adani Group and the Wilmar Group, Adani Wilmar is an FMCG food company offering most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. The company also offers a diverse range of industry essentials, including oleochemicals, castor oil and its derivatives, and de-oiled cakes. The company's products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups.
The company's product portfolio is categorized into (i) edible oil, (ii) packaged food and FMCG, and (iii) industry essentials. "Fortune", the company's flagship brand, is the largest selling edible oil brand in India. Recently the company has focused on value-added products and has launched products such as edible oil products, rice bran health oil, fortified foods, ready-to-cook soya chunks, khichdi, etc in line with this. The company has strong raw material sourcing capabilities and was India's largest importer of crude edible oil as of March 31, 2021.
The company operates 22 plants located across 10 states in India, comprising 10 crushing units and 19 refineries. The company's refinery in Mundra is one of the largest single-location refineries in India with a capacity of 5,000 MT per day. In addition to the 22 plants Adani Wilmar, also used 36 leased tolling units as of Sep 31, 2021, for additional manufacturing capacities.
The company's distributors are in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets. As of September 30, 2021, the company had 88 depots in India, with an aggregate storage space of approx. 1.8 million square feet across the country.
Objects of the Issue:
- Funding capital expenditure for expansion of existing manufacturing facilities and developing new manufacturing facilities (“Capital Expenditure”);
- Repayment/prepayment of borrowings;
- Funding strategic acquisitions and investments; and
- General corporate purposes.
Competitive strengths:
- Diversified product portfolio with leading brands catering to most daily essentials of an Indian kitchen.
- Strong brand recall and broad customer reach.
- Leadership in branded edible oil and packaged food business in India.
- One of the largest basic oleochemical manufacturers of India.
- Strong raw material sourcing capabilities from top global suppliers.
- An integrated business model with well-established operational infrastructure and strong manufacturing capabilities.
- Pan-India distribution network supported by a robust distribution infrastructure.
- Focus on environmental and social sustainability.
- Professional management and experienced board.
Company Promoters:
Adani Enterprises Limited, Adani Commodities LLP and Lence Pte. Ltd are the company promoters.
Shareholders Category Explained
Investors who hold Adani Enterprises Limited (AEL) shares on the 19th Jan 2022 (the date of filing RHP with SEBI) are eligible to apply under the shareholder's (SH) category of Adani Wilmar IPO.
Eligibility for IPO applications across category
- AEL shareholders (bidding up to Rs 2 lakhs) can also apply under the retail category.
- If an AEL shareholder is also an employee, he/she is also eligible to apply in all the three categories- RII (up to Rs 2 lakhs), Shareholder (up to Rs 2 lakhs) and Employees (up to Rs 5 lakhs).
- AEL shareholders can apply maximum up to reserved portion (~Rs 360 Cr) for the SH category.
Allotment in Shareholders Category
Allotment in shareholder category will be done in proportionate basis (similar to NII/HNI category). Minimum allotment is 1 lot.
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