Adani Commodities to offload 20% stake in Adani Wilmar through OFS

The floor price for the OFS is set at Rs 275, offering a 15% discount to the current market price

Adani Commodities LLP, a promoter of Adani Wilmar Ltd (AWL), is set to offload up to 20 per cent stake in the company through an Offer for Sale (OFS), opening on January 10, the company said in an exchange filing on Thursday. 

 

Adani Commodities will sell 175.4 million shares, representing 13.5 per cent of AWL’s equity, on January 10, the T Day (for non-retail investors only).  The OFS includes an oversubscription option, allowing the sale of an additional 84.4 million shares, which accounts for 6.5 per cent stake.

 

The floor price for the OFS is set at Rs 275, offering a 15 per cent discount to the current market price.

 

 

Bidding and allocation

Non-retail investors can bid on T Day, with the option to carry forward unallotted bids to January 13, T+1 Day, for potential allocation in the retail category.

 

Retail investors can bid on T+1 Day if the oversubscription option is exercised. Additionally, 25 per cent of the offer is reserved for mutual funds and insurance companies, with 10 per cent allocated for retail investors.

 

Allocation will be made at or above the offer price, with retail investors having the option to bid at the cut-off price, the firm said.

 

Adani Enterprises' exit from AWL

This OFS follows Adani Enterprises Ltd (AEL)'s announcement of a complete exit from AWL, its joint venture with Wilmar International. The exit will generate over $2 billion, which AEL plans to reinvest in its core infrastructure platforms.

 

Lence Pte Ltd, Wilmar's subsidiary, will acquire up to 31.06 per cent of AWL's shares from Adani Commodities.

 

AEL will also divest an additional 13 per cent stake to comply with public shareholding norms, marking its full exit from the 44 per cent holding in AWL.