Adani Enterprises to exit consumer goods joint venture with Wilmar Intl

Wholly-owned subsidiary of Wilmar Lence Pte Ltd will acquire up to 31.06 per cent of AWL's equity shares held by Adani Commodities LLP (ACL) via call or put options

Adani Enterprises Ltd (AEL) announced its complete exit from Adani Wilmar Ltd (AWL), its joint venture with Wilmar International, in an exchange filing on Monday. The divestment will raise proceeds worth over $2 billion, which AEL said would be used in 'core infrastructure platforms'.

 

As per the agreement, Lence Pte Ltd, Wilmar's wholly-owned subsidiary, will acquire up to 31.06 per cent of AWL’s equity shares held by Adani Commodities LLP, an AEL subsidiary, through call or put options. Additionally, AEL will divest approximately 13 per cent of its stake to meet public shareholding norms, marking a total exit from its 44 per cent holding in AWL.  

 

 

With a market capitalisation of Rs 42,785 crore ($5 billion) as of December 27, 2024, AWL is India’s largest food FMCG player, with significant urban and rural reach. AEL’s board has also resolved to withdraw nominee directors from AWL’s board, and the company will undergo a name change.  

 

Proceeds from the divestment will be used to bolster AEL’s core infrastructure investments in energy, transport, logistics, and primary industry, reinforcing its position as India’s leading incubator for growth platforms, the company said.

 

Adani Wilmar consumer goods and IPO

Adani Wilmar, with its flagship brand "Fortune," operates in three key segments: edible oils, packaged foods and FMCG, and industrial essentials. With more than 22 manufacturing plants and an extensive distribution network, the company reaches over 1.6 million retail outlets in India.

 

Adani Wilmar launched its initial public offering (IPO) in January 2022, aiming to raise Rs 3,600 crore for business expansion, debt repayment, and other corporate purposes.

 

Listed on the NSE and BSE on February 8, 2022, the IPO was oversubscribed 17.37 times, reflecting strong interest from retail investors, QIBs, and NIIs.  The stock debuted with a 4 per cent premium and gained traction post-listing due to robust financial performance and strategic expansions.

 

The company reported a consolidated net profit of Rs 311.02 crore for the quarter that ended on September 30, 2024 (Q2 FY25), compared to a net loss of Rs 130.73 crore during the same period last year. Revenue from operations surged 17.87 per cent year-on-year to Rs 14,460.45 crore for the quarter. Additionally, the firm reported a profit before tax of Rs 401.87 crore, a significant recovery from the pre-tax loss of Rs 108.25 crore in the same quarter last year.

 

Shares of Adani Wilmar closed at Rs 329.50 today on the BSE, down 0.17 per cent.

 

Meanwhile, shares of Adani Enterprises ended the trading session at Rs 2,593.45, near the high of the day, up by over 7.65 per cent.