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Adani Enterprises Ltd’s commodities and FMCG business arm, Adani Wilmar Ltd, will raise ₹4,500 crore through initial public offering, the company informed as it filed a draft red herring prospectus (DRHP) with the market regulator SEBI.
Also read: Why IPOs don’t make you rich
“Adani Wilmar Limited (AWL), a 50:50 joint venture company between the Adani group (Adani) and the Wilmar group, has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) in relation to its proposed IPO for listing on BSE Ltd and National Stock Exchange of India Limited (NSE)," Adani Enterprises Limited said in a regulatory filing late on Monday. The company, which will become seventh from the Adani stable to get listed on the bourses, proposes to raise up to ₹4,500 crore (approximately $600 million) through the IPO in the form of fresh issue of new equity shares by AWL. “There will not be any secondary offering,” company said.
The net proceeds from the IPO are proposed to be used by AWL to fund capital expenditure for expansion of AWL’s existing manufacturing facilities and developing new manufacturing facilities. It also looks to repay or prepay its borrowings, fund strategic acquisitions and investments; and for general corporate purposes.
Also read: Adani Wilmar sees food business growing 3x over oils in next five years
Commodity business
AWL offers most of the essential kitchen commodities for consumers, including edible oil, wheat flour, rice, pulses and sugar under a diverse range of brands across a broad spectrum.
The Proposed Listing is intended to further the growth of AWL’s operations by increasing its market visibility and awareness among current and potential customers, the company said.
Besides the flagship, AEL, the diversified Adani Group has gas utility Adani Total Gas, renewable energy player Adani Green Energy , ports and infrastructure player Adani Ports and Special Economic Zone, power producer Adani Power and transmission company Adani Transmission listed on the bourses.
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