Adani Wilmar OFS: Group raises Rs 4,850 crore from sale of 13.5% stake

Adani Group has raised Rs 4,850 crore from the sale of 13.5 percent stake in oil maker Adani Wilmar to Fortune as part of a strategy to exit non-core businesses to focus on its core infrastructure business.

On January 9, the group announced sale of Rs 17.54 lakh crore equity shares (13.50 per cent equity) in the company on January 10 (for non-retail investors) and on January 13 (for retail investors) at a floor or floor price of Rs 275 per share. . The offer for sale (OFS) includes an option to sell up to Rs 8.44 lakh crore equity shares, or 6.50 per cent equity.

Adani Commodities LLP, a subsidiary of Adani Enterprises Ltd, completed the offer for sale (OFS) of a 13.5 percent stake in Adani Wilmar to non-retail investors on January 10, according to information available from stock exchange filings. The deal witnessed tremendous demand from a diverse group of prominent international and local investors, with more than 100 investors participating in the deal.

“We would like to announce to the stock exchanges our intention to exercise the option to oversubscribe the offer to the extent of Rs 1.96 lakh crore equity shares (representing 1.51 per cent of the total issued and paid-up share capital of the company) in addition to Rs 17.54 lakh crore equity shares,” the group said in its filing. Which represents 13.50 percent of the company’s total issued and paid-up capital) constitutes part of the size of the basic offer.”

Accordingly, the total number of Offer Shares will amount to Rs 19.50 lakh (15.01 per cent) of which up to Rs 1.95 lakh (1.50 per cent) will be available as part of the offer on January 13.

The group had announced its exit from Adani Wilmar in December 2024 by selling the majority of its stake to a joint venture partner.

Following the successful completion of the OFS, Adani Wilmar has completed its program to comply with the Minimum Public Shareholding Norms (MPS), with 74.37 per cent held by the promoters, and the remaining 25.63 per cent held by public shareholders.

Adani Wilmar Ltd is an equal joint venture between Adani Group and Singapore-based commodities trading company Wilmar. The two partners collectively own 87.87% of Adani Wilmar’s shares, well in excess of the maximum permissible 75%.

SEBI rules stipulate that large companies must have at least 25 percent equity stake available to the public within three years of listing.

This transaction follows the agreement between Adani Enterprises Ltd (AEL) and Wilmar announced on 30 December 2024, under which Wilmar agreed to acquire AEL’s stake in AWL after achieving compliance with MPS standards.

OFS is the first phase of the port-to-energy conglomerate’s exit from Adani Wilmar Ltd (AWL), in which it owns 43.94 percent. In the second phase, the Singaporean company Wilmar International Ltd agreed to acquire the remaining stake at a price not exceeding 305 rupees per piece.

On December 30, Adani announced its exit from the company that makes Fortune cooking oil, wheat flour and other food products. As per this announcement, Adani will sell up to Rs 40.37 crore equity shares (31.06 per cent stake) to Wilmar at not more than Rs 305 per share. The number of shares to be sold to Wilmar will depend on the response to the OFS. The transaction is expected to be completed before March 31, 2025.

SBI Capital, Jefferies, ICICI Securities, Nuvama, Antic and Monarch acted as bankers to the OFS.

Through this transaction, the Adani Group has raised a total capital of US$ 3.15 billion this financial year. AEL had previously raised $500 million in October 2024, via a qualified institutional placement. As a group, AEL will have a $2.5 billion war chest to fully fund AEL, strengthen its incubation portfolio and increase its focus on core infrastructure platforms, including airports, roads, data centers and green hydrogen.

Founded in 1999, Adani Wilmar manufactures Fortune brand cooking oil, wheat flour, pulses, rice and sugar. It owns 23 factories in 10 states. The FMCG company recorded a total consolidated income of Rs 51,555.24 crore during the last financial year. Its market capitalization was nearly Rs 42,000 crore (about $5 billion) on January 6.

(With inputs from PTI)