A successful IPO will make this the seventh Adani group company to be listed on the Indian bourses.
Adani Wilmar Ltd (AWL), the equal joint venture between Adani Enterprises Ltd and Wilmar International Ltd and the owner of the Fortune brand of edible oils, on Monday filed the draft red herring prospectus (DRHP) for its proposed initial public offering (IPO), Adani group flagship company Adani Enterprises said in an exchange filing.
“The proposed listing of AWL on the Stock Exchanges will comprise an IPO in the form of fresh issue of new equity shares by AWL for an amount of up to Rs4,500 crore (approximately $ 600 million). There will not be any secondary offering.
Mint was the first to report on Adani group’s plans to take public its FMCG joint venture with Wilmar in March.
Adani said that the proceeds from the IPO are proposed to be used to fund capital expenditure for expansion of AWL’s existing manufacturing facilities and developing new manufacturing facilities; repayment/prepayment of borrowings; to fund strategic acquisitions and investments; and general corporate purposes.
“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 exchange filing said.
A successful IPO will make this the seventh Adani group company to be listed on the Indian bourses. Other listed entities include Adani Enterprises, Adani Ports and Special Economic Zones Ltd, Adani Transmission Ltd, Adani Power Ltd, Adani Total Gas Ltd, and Adani Green Energy Ltd.
Adani Wilmar has the largest range of edible oils comprising soya bean, sunflower, mustard, and rice bran, among others.
Its Fortune brand of oil has around 20% market share in India.
The company owns more than 40 units that cumulatively translate to a refining capacity of over 16,800 tonnes per day, a seed-crushing capacity of 6,000 tonnes a day, and a packaging capacity of 12,900 tonnes per day, according to its website.
The venture has also entered the packaged Basmati rice, pulses, soya chunks, and flour business.
Adani Wilmar also caters to institutional demand through its industry-essentials range, which includes bulk packs of consumer essentials, bakery fats, castor oil derivatives, oleo-chemicals, and soya products.
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