Adani Enterprises announces IPO plans of FMCG subsidiary Adani Wilmar
Adani Enterprises Limited said that Adani Wilmar Limited is seeking an initial public offering (IPO) for listing on both the BSE and National Stock Exchange of India.
Adani Wilmar is a 50:50 joint venture between the Adani Group and the Wilmar Group, a Singapore-based agribusiness company.
In view of the proposed IPO, Adani Wilmar has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI).
Adani Wilmar is a fast-moving consumer goods (FMCG) food company in India. It offers essential kitchen commodities such as edible oil, rice, wheat flour, pulses, and sugar under a diverse variety of brands.
According to Adani Enterprises, the proposed listing of Adani Wilmar on the two Indian stock exchanges will be made up of an IPO in the form of freshly issued new equity shares by the company for an amount of up to INR 45,000 million ($600 million).
The Adani Group subsidiary said that there will not be any secondary offering.
Adani Wilmar will use the net proceeds from the IPO for funding capital expenditure for expanding its existing manufacturing facilities as well as for developing new manufacturing facilities.
The proceeds will also be used for repayment or prepayment of borrowings, for funding strategic acquisitions and investments, and for general corporate purposes.
Adani Enterprises added that the intention behind the proposed listing is for furthering the growth of Adani Wilmar’s operations by boosting its market visibility and awareness among existing and potential customers.