Adani Wilmar surges 10% as Adani Ent to demerge food-FMCG biz to company

Adani Enterprises has approved demerger of the food FMCG business to Adani Wilmar along with AEL's strategic investment in Adani Commodities LLP

Shares of Adani Wilmar (AWL) surged 10 per cent to Rs 381.30 on the BSE in Fridays intraday trade amid heavy volumes. The spurt in Adani Wilmar stock price comes after Adani Enterprises (AEL) approved demerger of the food FMCG (fast moving consumer goods) business to the company along with AEL's strategic investment in Adani Commodities LLP.

The food FMCG business has become self-sustained, performing well, and is poised for further growth under Adani Wilmar. For Adani Enterprises Ltd, this arrangement will not only unlock the value for shareholders but also allow focused strategy for sustainable growth in its incubating businesses, AEL said in a media release.

 

At 02:17 PM, Adani Wilmar Ltd share price was trading 9 per cent higher at Rs 380.50 as compared to 0.96 per cent decline in the BSE Sensex. The average trading volume on the counter jumped nearly four-fold with a combined 25.5 million shares changing hands on the NSE and BSE.  The stock had hit a 52-week high of Rs 410 on December 6, 2023.

Meanwhile, shares of AEL were down 1 per cent o Rs 3,176, after hitting a low of Rs 3,114 in the intraday trade.

The boards of directors of Adani Enterprises Ltd, the flagship company of Adani group, and Adani Wilmar Ltd, a food company, on Thursday approved the scheme of arrangement under which AEL will transfer its 43.94 per cent stake held in AWL to its own shareholders. With this, the existing shareholders of AEL will hold shares directly in AWL. Post-demerger, AEL shareholders will receive 251 shares of AWL for every 500 shares of AEL, or in that ratio.

AWL is a joint venture between two global corporate group, Adani group – the leaders in Energy & Private Infrastructure Conglomerate in India and Wilmar Group Singapore, Asia’s leading Agri business group.

The company is in the FMCG business, comprising primarily of edible oil and food & other FMCG segment. The company is also engaged in industry essential segment such as castor derivatives, Oleo derivatives and De-oiled cake etc. The company has manufacturing facilities across the country and sells primarily in India.

The company sells its entire range of packed products in edible oils and Food & FMCG segment under the following Brands: Fortune, King's, Raag, Bullet, Fryola, Jubilee, Aadhaar, Kohinoor, Charminar and Trophy. The overseas subsidiary companies are mainly engaged in trading & refining of crude edible oil. It sells its packed products under various Brands.