The shares of Adani Wilmar closed at over 15 per cent premium over its issue price of ₹230, after listing at a discount on the bourses on Tuesday.
Adani Wilmar listed at ₹221 on the BSE, down ₹9 or 3.91 per cent from its IPO price. However, the stock revved up to close at ₹265.20, a ₹35.20 or 15.30 per cent premium over its IPO price.
It listed at ₹227 on the NSE, down ₹3.00 or 1.30 per cent and closed higher at ₹267.35.
The company has fixed the IPO price as ₹230 a share, at the upper end of the price band ₹218-230. The ₹3,600-crore initial public offering (IPO) of Adani Wilmar, the joint venture between Adani Group and Wilmar Group of Singapore, was subscribed over 17.37 times.
The IPO of the edible oil major which opened between January 27 and 31, had received bids for 212.87 crore shares against an offer size of 12.25 crore shares.
While qualified institutional investors put in bids for 5.73 times of the portion reserved for them, the quota for retail investors was subscribed 3.92 times and for non-institutional investors (High net worth individuals) by 56.3 times.
Adani Wilmar has also reserved a part of IPO shares for its employees and shareholders, which has seen a subscription of 51 percent and 33.33 times, respectively.
According to experts, the weak debut can be attributed to the weakness in the overall market. Analysts are bullish on the long-term prospects of the stock.
Santosh Meena, Head of Research, Swastika Investmart Ltd said, “Tepid listing of Adani Wilmar can be attributed to weak market sentiments otherwise fundamental and valuations were good for this IPO. “
Parth Nyati, Founder, Tradingo said, “The IPO of Adani Wilmar got decent subscriptions as the company is a leader in branded edible oils and packaged foods in India. The IPO is priced at a P/BV of 7x on a NAV of 28.86 and PE of 36x on its FY21 earnings which are slightly lower than its listed peers.” Likhita Chepa, Senior Research Analyst at CapitalVia Global Research said, “The stocks got listed at a discount owing to the weaker sentiments of the secondary market in the last few trading sessions.”
However, according to Chepa, “Its wide distribution, healthy financials, strong brand recall, increasing reach and household consumption, its prospects appear to be optimistic over the long term.”
Ahead of the issue, the company had raised ₹940 crore from anchor investors by allocating around 4.09 crore equity shares at ₹230 apiece.
Anchor investors include Government of Singapore, Monetary Authority of Singapore, Jupiter India Fund, Volrado Venture Partners Fund, Societe Generale, Cohesion MK Best Ideas, Winro Commercial and Dovetail India Fund. Besides, fund houses such as HDFC Mutual Fund, Nippon Life India Trustee, Aditya Birla Sun Life Trustee and Sun Life Excel India Fund also participated in the anchor book.
The company sells cooking oils and other food products under the Fortune brand and is a 50:50 joint venture between business conglomerate Adani group and Singapore-based Wilmar.