NEW DELHI: The initial public offer (IPO) of another firm from the stable of Adani Group, Adani Wilmar, will open for subscription on Thursday and will close on Monday next week.
The IPO comprises a fresh issue of shares worth Rs 3,600 crore and the entire proceeds will go to the company. The firm said Rs 1,900 crore will be utilised to fund the capital expenditure, another Rs 1,058.9 crore will be used for the repayment/prepayment of the borrowings and the rest Rs 450 crore will be utilised for funding strategic acquisitions and investments. Adani Wilmar is selling shares in the Rs 218-230 range.
Most analysts are bullish on the edible oil major’s prospect after listing and advise investors to subscribe to the issue. They see diversified portfolio, strong brand value, raw material sourcing capabilities and strong parentage as key advantages for its future growth. Adani Wilmar markets its products under the Fortune brand.
“In terms of valuations, the post-issue TTM P/E works out to 37.6 times at the upper end of the issue price band, which is reasonable considering the company’s historical top-line and bottom-line CAGR of 13 per cent and 39 per cent, respectively over FY19-21,” said Jyoti Roy of Angel One.
Source: ET Prime
