Adani Enterprises jumps 7%, claims title of most valuable Adani Group firm

On August 2, Adani Wilmar, a 50:50 joint venture company between the Adani group and the Wilmar group filed draft papers for Rs 4,500 crore-IPO with Sebi.

Shares of Adani Enterprises rallied 7 per cent to Rs 1,528.30 on the BSE in intra-day trade on Friday, bouncing back 8 per cent from its day's low of Rs 1,417 on the back of heavy volumes. The stock had hit a record high of Rs 1,718.45 on June 7, 2021. Trading volumes on the counter jumped 1.6 times, with a combined 9.74 million equity shares having changed hands on the NSE and BSE till 12:19 pm. In comparison, the S&P BSE Sensex was down 0.24 per cent at 54,363 points.

With a market capitalisation (market-cap) of Rs 1.68 trillion, Adani Enterprises has become the most valuable Adani Group firm.  Adani Ports and Special Economic Zone is ranked second with a market cap of Rs 1.46 trillion, followed by Adani Green Energy (Rs 1.42 trillion), Adani Transmission (Rs 1.06 trillion) and Adani Total Gas (Rs 1.02 trillion), the BSE data shows.

Adani Enterprises is the flagship company of Adani Group, one of India’s largest business organisations. The next generation of its strategic business investments are centered on airport management, roads, data center and water infrastructure which has significant scope for value unlocking.

On August 2, 2021, Adani Enterprises announced that Adani Wilmar (AWL), a 50:50 joint venture company between the Adani group and the Wilmar group, filed its draft red herring prospectus with the Securities and Exchange Board of India in relation to its proposed Initial Public Offering (IPO) to raise up to Rs 4,500 crore.

AWL is one of the few large fast moving consumer goods (FMCG) food companies in India to offer most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses and sugar under a diverse range of brands across a broad spectrum.

The net proceeds from the IPO are proposed to be used by AWL to fund capital expenditure for expansion of AWL's existing manufacturing facilities and developing new manufacturing facilities, repayment/prepayment of borrowings, to fund strategic acquisitions and investments and for general corporate purposes.

The proposed listing and issue price of the IPO shares are subject to many factors, including but not limited to the book building process under Indian regulations, receipt of applicable approvals and external factors such as price/earnings ratio, level of investor interest, prevailing market conditions and certain other considerations. As there is no assurance that the proposed lsting will proceed, shareholders and potential investors are advised to exercise caution when dealing with the securities of the company, Adani Enterprises said in a statement.

Meanwhile, besides Adani Enterprises, other Adani Group companies were also trading higher in the range of 1 per cent to 5 per cent on the BSE in an otherwise subdued market.