Table of Contents
- What are the risk factors in Adani Wilmar IPO?
- What are the competitive strengths in Adani Wilmar IPO?
- What are the strategies Company follow towards their growth?
- What is Adani Wilmar Limited’s business model?
- Who are the promoters of Adani Wilmar Limited ?
- How are the Financials of Adani Wilmar IPO?
- What are the objects of Adani Wilmar IPO net proceeds?
- Adani Wilmar IPO open & close date
- Adani Wilmar IPO allotment, refund & listing date
- Adani Wilmar IPO allotment status
- Adani Wilmar IPO GMP (Grey Market Price) today
- Adani Wilmar IPO details, price band, & RHP
- Adani Wilmar IPO live subscription status
- Adani Wilmar IPO valuation (Overpriced or not?)
- Adani Wilmar IPO is good or bad? (review)
What are the risk factors in Adani Wilmar IPO?
1. Company’s operations are highly dependent on the availability of raw materials like unrefined palm oil, soybean & sunflower oil
2. Due to the Covid-19 pandemic various costs for the company has increased
3. There are legal proceedings against the members of the company
4. A large portion of the company’s revenue comes out of edible oils, so any change in the availability of raw materials or other changes may impact the business
5. Company deal in commodities business which is subject to fluctuations in prices
6. Company has developed various brands, so any effect on the brand image will affect the business
7. The company utilize various third-party services may its raw materials, transport, or power so any disruption in their services may affect the business
8. The company has a huge debt of Rs 92,353.33 million up to 30-09-2021
9. As of 30-09-21 company has contingent liabilities of Rs 1760.42 million, which if materialize will impact the business
What are the competitive strengths in Adani Wilmar IPO?
1. The company has a diversified products portfolio with reputed and established brands in the market
2. Company has a broad customer reach, as of March 2021, they were present in one out of three households in India with a household reach of 90.51 million through their Fortune brand.
3. The company is the leading edible oil brand in India with their leading brand Fortune
4. They are among the five largest basic oleochemical manufacturers in India in terms of revenue as of March 31. 2020
5. They are also the largest manufacturer of stearic acid and glycerine in India with a market share of 32% and 23%
6. Company has strong manufacturing capabilities with 22 plants across 10 states in India
7. Adani Wilmar has a pan India distribution network with 5,590 distributors in India located in 28 states and 8 union territories
8. Company is focused on environmental and social sustainability already there is solar power in 5 of their plants
9. Company has a professional and experienced management team
10. The company has shown strong growth in revenue from Rs 29,766 crores in FY20 to Rs 37,195 crores in FY21
11. Adani Wilmar has also shown strong growth in margins in the last two years
12. Also, Adani Wilmar IPO net proceeds will directly go towards the growth and expansion of the company
What are the strategies Company follow towards their growth?
1. As the population is more driving towards hygiene and packaged food the company focuses to become the leading packaged food and FMCG company in India
2. The company plans to expand its distribution network through an omnichannel approach
3. The company also focuses on increasing its brand awareness through different modes of advertising
4. Company plans to introduce new products and categories
5. Company also seeks opportunities to pursue strategic acquisitions
What is Adani Wilmar Limited’s business model?
The company has different products under three main categories which are:
1. Edible Oil: The company deals in different types of edible oils which are soyabean oil, palm oil, sunflower oil, rice bran oil, mustard oil, groundnut oil, cottonseed oil, blended oil, vanaspati, and specialty fats.
2. Packaged foods and FMCG: The company is focused on packaged food products like wheat flour, rice, besan, pulses, rawa, suji, basmati rice, and non-basmati rice in different grain sizes. They also offer packaged sugar.
They started to offer soaps under our “Alife” brand in the fiscal year 2020. The sales volume of soaps under the “Alife” brand increased rapidly by 173.46% from 1,962 MT in 2020 to 5,366 MT in 2021
3. Industry essentials: The company offers industry essentials to institutional customers, products like oleochemicals, castor oil and its derivatives, de-oiled cakes.
Who are the promoters of Adani Wilmar Limited ?
Adani Enterprises Limited, Adani Commodities LLP, and Lence Pte. Ltd are the promoters of the company
How are the Financials of Adani Wilmar IPO?
- The company’s revenue is consistently growing over the past three years
- The company’s profits are also showing consistent growth
- Also, the company has shown growth in its margins in the last two years
| Financial Year Ended | Revenue (₹ Crores) | PAT (₹ Crores) | EPS (₹) |
| March 2019 | 28,919.68 | 375.52 | 3.29 |
| March 2020 | 29,766.99 | 460.87 | 4.03 |
| March 2021 | 37,195.66 | 727.65 | 6.37 |
| The period ended September 30, 2021 | 24,957.29 | 357.13 | 3.12 |
What are the objects of Adani Wilmar IPO net proceeds?
Adani Wilmar IPO net proceeds of Rs 3600 crores Will be utilized in the following manner:
- Funding capital expenditure for expansion of our existing manufacturing facilities and developing new manufacturing facilities
- Repayment/prepayment of our borrowings;
- Funding strategic acquisitions and investments; and
- General corporate purposes
Adani Wilmar IPO open & close date
IPO open date is: 27st Jan 2022
IPO close date is: 31st Jan 2022
Adani Wilmar IPO allotment, refund & listing date
Adani Wilmar IPO allotment date is: 3rd Feb 2022
IPO refund date is: 4th Feb 2022
IPO listing date is: 8th Feb 2022
Adani Wilmar IPO allotment status
IPO allotment can be checked through their registrar website linkintime.co.in on 3rd Feb 2022
Adani Wilmar IPO GMP (Grey Market Price) today
| Date | GMP ( ₹ ) | Premium (%) | Expected Listing Price |
| JAN 26, 2022 | Rs 55 | 23.91% | Rs 285 |
| JAN 27, 2022 | Rs 48 | 20.87% | Rs 278 |
| JAN 28, 2022 | Rs 42 | 18.26% | Rs 272 |
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Adani Wilmar IPO details, price band, & RHP
| IPO bidding date | 27 Jan 2022 – 31 Jan 2022 |
| Price range | 218 – 230 |
| Minimum order quantity | 65 |
| (D)RHP | View |
Adani Wilmar IPO live subscription status
| Qualified Institutional Buyers (QIB) | Noninstitutional bidders (NII) | Retail individual investors (RII) | Total no of shares offered | |
| No of shares offered |
| Date | Qualified Institutional Buyers (QIB) (No of times) | Noninstitutional bidders (NII) (No of times) | Others | Retail individual investors (RII) (No of times) | Total subscription (No of times) |
| 27th JAN 2022 | 0.30x | 0.54x | 0.15x | 0.96x | 0.57x |
| 28TH JAN 2022 | 0.30x | 0.81x | 0.94x | 1.66x | 1.01x |
| 29TH JAN 2022 | 0.00x | 0.00x | 0.00x | 0.00x | |
| 30TH JAN 2022 | 0.00x | 0.00x | 0.00x | 0.00x | |
| 31ST JAN 2022 | 0.00x | 0.00x | 0.00x | 0.00x |
Adani Wilmar IPO valuation (Overpriced or not?)
Calculating valuation with its upper price band of Rs 230
Given,
FY-21 EPS is = 6.37
The last three years’ weighted average EPS is = 5.07
6 months Sep 21 EPS is = 3.12
Workings & calculation of P.E
FY-21 EPS is = 6.37, 230/6.37 = 36x P.E
The last three years’ weighted average EPS is = 5.07, 230/5.07 = 45x P.E
6 months ended Sep 2021 EPS is = 3.12 , 230/3.12= 73x P.E but when we annualise it 73/2 = 36.5X
Hence, the company is asking P.E ranging between 36x to 45x
Listed peer
there are listed peers like Nestle India trading at P/E 81x (Highest) and Britannia Industries at P/E 44x (Lowest) and the industry average is 66x.
Hence, Adani Wilmar IPO Price at 36x to 45x is reasonably priced.
Adani Wilmar IPO is good or bad? (review)
Adani Wilmar is the joint venture between the Adani Group and Wilmar Group, it is among the top 10 FMCG companies in India, Adani Wilmar is also the No. 1 edible oil company in India leading with Fortune brand, Also they are among the biggest edible oil companies in terms of distribution network, with a pan India network and diversified product portfolio Adani Wilmar is one of the top FMCG companies in India, After looking its financials which are also at a boost with increasing revenue and profits year on year one can definitely invest in the company for mid and long term approach, also its IPO pricing is reasonable which makes it more attracting for investors.
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