Adani Wilmar shares slide 9% as promoter looks to divest 20% stake via OFS | Stock Market News

Adani Wilmar shares slide 9% as promoter looks to divest 20% stake via OFS | Stock Market News

Shares of Adani Wilmar fell 9.5% in early trade on January 10, hitting ₹292.65 per share. The decline followed Thursday evening's announcement that its promoter proposes to divest up to 20% stake in the company through an Offer For Sale (OFS).

"Adani Commodities LLP is one of the promoters of the company. The seller proposes to sell up to 17,54,56,612 equity shares of the company (representing 13.50% of the total issued and paid-up equity share capital of the company) (“Base Offer Size”) on January 10, 2025," the company said in its Thursday's regulatory filing. The company also has the option to exercise a greenshoe mechanism, allowing it to sell an additional 6.5 per cent stake in the OFS.

The OFS price has been set at ₹275 per share, representing a 15% discount compared to Adani Wilmar's closing price on Thursday. 

The sale will commence for non-retail investors on Friday, January 10, and for retail investors on Monday, January 13.

Late last month, Adani Enterprises, the flagship entity of the Adani Group, announced its decision to exit its joint venture stake in Adani Wilmar. As part of this plan, the company intended to sell a 13.5 per cent stake to meet the minimum public shareholding requirements, while Wilmar International, the other promoter of Adani Wilmar, agreed to acquire the remaining 31 per cent stake.

As of the September quarter, Adani Commodities held a 43.94 per cent stake in Adani Wilmar, with Lence Pte., a subsidiary of Wilmar International, owning an equal 43.94 per cent stake.

The value of Adani Enterprises' current stake in Adani Wilmar is estimated at ₹18,500 crore, equivalent to over $2 billion.

The company achieved a volume growth of 6% YoY in Q3, despite significant price hikes driven by a surge in raw material costs. Revenue grew by 33% YoY compared to the previous year.

In Q3, the demand for edible oil, which contributed 79% value, was impacted by a sharp rise in underlying commodity prices following the customs duty hike in mid-September.

Its edible oil volume grew by approximately 4% YoY in Q3FY25. However, branded sales declined in low single digits, primarily due to a double-digit decline in packed palm oil sales and downtrading by consumers. The Food & FMCG segment recorded a YoY revenue growth of 22% in Q3. The Industry Essentials revenue grew by 6% YoY in Q3FY25, as per the company's regulatory filing.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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