Adani Wilmar shares slide 9% as Promoter begins partial stake sale via OFS

Adani Wilmar OFS: Adani Commodities LLP will offlead 13.5 per cent stake via the OFS. It will have the right to sell an additional 6.5-per cent stake

Adani Wilmar share price today tumbled 9 per cent on Friday, January 10, 2025. Adani Wilmar share hit an intraday low of Rs 294 per share on the BSE and Rs 293.5 per share on the NSE. By comparison, the benchmarks Sensex and Nifty indices were down up to 0.3 per cent at 9:35 AM.

 

The fall in Adani Wilmar share price came after the company’s promoter, Adani Commodities, began its partial stake sale via offer for sale (OFS) on January 10, 2025.

 

In a stock exchange filing, Adani Wilmar said “Adani Commodities LLP, one of the Promoters of the company, proposes to sell up to 17,54,56,612 equity shares of the company (representing 13.50 per cent of the total issued and paid-up equity share capital) on January 10, 2025 to non-retail investors and on January 13, 2025 to retail investors”.

 

 

Further, Adani Commodities will have an option to additionally sell up to 8,44,79,110 equity shares of the company, representing 6.5 per cent of the total issued and paid-up equity share capital of the company, in the event of the oversubscription of the OFS. If this Oversubscription Option is exercised, Adani Commodities LLP will, cumulatively, offload 20 per cent of the total issued and paid-up equity share capital.

 

The floor price for the Offer shall be Rs 275, roughly 15 per cent lower than the stock’s closing price on Thursday. The Promoter entity is offloading its stake to meet the minimum shareholding criteria.

 

Notably, the OFS has been announced after Adani Enterprises Ltd said it would make 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. Following this deal, Wilmar International is expected to introduce its global brands into the Indian market.

 

That apart, Adani Wilmar is looking to capitalise on its dominant position in the edible oil business to set a foundation for FMCG growth.

 

In the December quarter, Adani Wilmar’s FMCG business had achieved a 24 per cent year-on-year growth in volume, as per the pre-result quarterly update.

 

Consequently, the share of food and FMCG in overall volumes increased to 20 per cent, while its share in total revenues rose to 9 per cent, up from 10 per cent and 5 per cent, respectively, in FY21.