The initial public offering of the joint venture of Adani Enterprises and Wimar Group, Adani Wilmar, has been subscribed 0.3 times on January 27, the first day of bidding. The offer has received bids for over 3 crore equity shares against the IPO size of 12.25 crore equity shares.

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Retail investors subscribed 0.61 times to the IPO, and non-institutional subscribers put in bids for 5 percent against their reserved portion. Qualified institutional buyers subscribed 0.11 times their reserved portion.

Adani Wilmar is one of the few large FMCG companies in India that offers the most essential kitchen commodities like edible oils, wheat flour, rice, pulses, among others. Fortune is the company's flagship oil brand. Edible oil makes up 71 percent of its branded portfolio, while food and FMCG products contribute 86 percent to the portfolio in terms of volume.

Amongst the large FMCG players, only the likes of Adani Wilmar, Patanjali, and Emami Agrotech have registered double-digit growth in the past five years. Adani Wilmar was one of the fastest-growing and most profitable food companies in India during FY15-20 based on growth in revenues and EBITDA.

Also Read | Should you subscribe to Adani Wilmar IPO?

The company has 22 plants, located across 10 states in India. It comprises 10 crushing units, 18 refineries with a capacity of 8,525 MT and 16,285 MT, respectively. Its integrated infrastructure enables it to share supply chains, storage facilities, distribution networks, and manpower among different products. It also helps the company reduce the overall cost of processing and logistics.

The price band for the offer, which closes on January 31 is Rs 218-230 apiece. Ventura Securities has recommended subscribing to the issue with a 24-month price target of Rs 468.8 per share, representing an upside of 103 percent from the issue price. In the bear case scenario, the brokerage expects the shares to trade at Rs 313 and in the bull case, it expects shares to rise as much as Rs 616.

(As per subscription data available on exchanges till 14:15 pm)

(Edited by : Yashi Gupta)

First Published:Jan 27, 2022 2:26 PM IST