Adani Wilmar IPO subscribed 65% so far on Day 2

The issue was subscribed 65 per cent by 10.25 am on Day 2. It saw applications for 7,94,12,905 shares so far against the total issue size of 12,25,46,150 shares. The IPO is entirely a fresh issue.

The quota for retail bidders was subscribed 1.13 times, whereas the HNI portion was subscribed about 60 per cent. The QIB portion fetched 30 per cent bids, while the employee portion was subscribed merely seven per cent.

The company has reserved equity shares aggregating to Rs 107 crore for eligible employees, who will get a discount of Rs 21 per share during the bidding process.

Adani Wilmar has allocated 4.09 crore equity shares to anchor investors at Rs 230 apiece, aggregating the transaction size to Rs 940 crore, according to a circular on the BSE website.

Government of Singapore, Monetary Authority of Singapore, Societe Generale, Jupiter India Fund, HDFC Mutual Fund (MF), Nippon India MF and Aditya Birla Sun Life MF are among the anchor investors.

The company is selling its shares in the price range of Rs 218-230 apiece. Investors can bid for a minimum of 65 equity shares and in multiples of 65 thereof. The issue can be subscribed till January 31, Monday.

The majority of the brokerages are positive on the issue and have suggested investors to bid for the IPO, citing its reasonable valuations, growth plans for the future, robust product line, sound balance sheet and strong parentage.

Adani Wilmar is a 50:50 joint venture between Gautam Adani’s Adani Group and Singapore-based Wilmar group. It sells cooking oils and some other products under the Fortune brand.

AWL has a differentiated and diversified product portfolio with market-leading brands. It is one of India’s leading consumer product companies with leadership in edible oil and packaged food business, said brokerage firm Hem Securities.

The company has an extensive pan-India distribution network, focussing on environmental and social sustainability and strong parentage with professional management and experienced board, it added with a ‘subscribe’ rating.