Adani Wilmar IPO : All Details
The demand for Adani Wilmar’s Initial Public Offer (IPO) was 17 times more than the number of shares available.
Adani Wilmar, the FMCG business that owns the Fortune brand, was expected to announce the allotment of shares.
In other words Shares were traded more than 17 times the number of shares issued by Adani Wilmar, which is considered an over-subscribed IPO. Adani Wilmar raised a total of for the Offer.
On Thursday, but The IPO allotment for Adani Wilmar is expected to be announced today. Those who applied for the Rs.3600 crore Public Offer do not need to run from pillar to post because they may check Adani Wilmar IPO allotment status online.
Bidders can check their share allotment status online through the official BSE website or the official registrar of the Public Issue website. The official registrar of the IPO, according to the Red Herring Prospectus (RHP), is Link Intime India Private Ltd.
The official link can be found at the bottom of the RHP. The company allotted Rs.1,737 crore for the Public Issue on Thursday, of which 14 per cent went to the overseas institutional investors, 11 per cent went to retail investors, and 6 per cent went to other shareholders.
On the final day of bidding, the bids were received for 212.87 crore shares, compared to the whole lot size of 12.25 crore shares, according to stock market data. Investors submitted bids totaling approximately Rs 49,000 crore, nearly 17.3 times the whole lot size
The bids include bids for the shares being sold on market days. On days when Stock Exchanges are closed, the investors can submit their bids only through their brokers.
Adani Wilmar, a Joint Venture between Adani Group and Singapore’s Wilmar Group, set a price bracket of Rs 218-230 per share for the Initial Public Offering, which began bidding on January 27. The company’s market valuation is around Rs 30,000 crore at the upper end.
The IPO has received support from the government and the Reserve Bank of India to provide the capital for development of the Adani group’s flagship project — the $21 billion, 5,000-megawatt (MWe) Mundra Port in Gujarat’s Kutch district. The government has promised to support the Adani group’s MPRAI project for six years and further five-year extension. A key source of support is India’s state-run banks, who will subscribe to the IPO.
On January 31, the market regulator Sebi has sought the Centre’s permission to list the company on Indian Stock Exchanges. Earlier, Sebi had approved the listing after the company received requisite approvals from the ministry of corporate affairs.
It’s interesting to note that the Adani Group has made no contribution to the IPO. They have sold their own shares to raise funds.
To meet the IPO, Adani Group had to borrow Rs 20,000 crore from its shareholders, who have put in Rs 1,350 crore upto now. This raises the questions – if Adani Group has borrowed so much money, will it be able to manage the project? Or, will they sell the project?
The Initial listing will be on the Stock Exchange for an Initial listing period of six months.
The funds raised from the Public Offering will be utilised to fund capital expenditures, debt reduction, and acquisitions.
According to dealers in the unlisted market, the grey market premium (GMP) for Adani Wilmar shares is between Rs 31 and Rs 33. The GMP is a predictor of potential listing gains. If current prices hold, its possible to be listed at roughly 15%.
Bidders who did not receive an allotment in the IPO may see reimbursements begin on February 4. Others who would be granted shares could see their shares credited to their Demat Accounts by February 7. The IPO is expected to go public on February 8th.
The allotment of shares will be done based on the BSE STAR Clearing System, which is a fully computerised system. It has an automatic match of bids and Offers in real-time through a centralised computer system. The clearing system tracks the price of shares on the Exchange and all the trades during the auction process. As of now, ₹1150 crore has been allotted by Link Intime India Private Limited to the Qualified Institutional buyers in the Issue. Adani Wilmar IPO allotment is expected to start with two tranches. The first tranche of ₹2,000 crore will be allotted to buy-side investors, The second tranche of ₹750 crore is to be allotted to retail investors who are in the market to trade.
The entire amount, ₹3600 crore, will be made available for allotment through the IPO to Adani Wilmar, Adani Wilmar Ltd (AWL) was established in the year 1999 between Adani Group and Wilmar Group of Singapore. This FMCG company product portfolio is spread across three different categories, (i) Edible Oil (ii) Packaged food & FMCG wheat flour, rice, pulses, and sugar (iii) Industry essentials.. This is the biggest IPO since March this year when Reliance Industries launched its Rs. 50,000-crore IPO. Adani Wilmar IPO allotment schedule: Date Time Offer Period (in minutes) Price Band Opening
IPO opening date Jan 27 2022
IPO closing date Jan 31,2022
Issue type Book built Issue IPO
Face valuie Rs. 1
IPO Price Rs. 218 – 230
Market lot 65 shares
Adani Wilmar IPO Allotment procedure:
The entire Public Issue of Adani Wilmar will be priced at ₹218-230 a share.
Those who want to Invest ₹3600 crore or more in the Adani Wilmar IPO can buy or sell the entire amount of the Issue.
Out of the Potential Issue of RS. 3600 cr
35% was reserved for Retail public
15% was reserved for HNI. HNI stands for High Net-worth Individual.
On February 2,2022
Grey market premium was RS. 32/34 Buyers
Application rates RS. 650
On February 3,2022
Grey market premium was RS. 30/34 Buyers
Application rates RS. 650
Subject to rates : no Traders
On February 4 2022
Grey market premium was RS. 33/35 Buyers
Application rates RS. 600
Subject to rates : no Traders
The cut off price is Rs 230 if we add today’s grey market premium the total price will be 260
This way it is trading with 16% premium
The grey market premium (GPM) is the price at which grey market IPO shares are sold before they are listed . in simple words the stock of the company that issued at the Initial Public Offering (IPO) is bought and sold outside of the stock market.
Adani Wilmar IPO documents: As per the Red Herring Prospectus (RHP), Adani Wilmar shares will be made available on the BSE STAR Clearing System. The official website of the BSE STAR Clearing System has all the details of Adani Wilmar IPO. The BSE STAR Clearing System covers all stocks traded on the BSE STAR platform. The HPXSTAR system has been developed by the BSE STAR and is a web-based platform for the automatic matching of bids and the clearance and settlement of trades. Adani Wilmar IPO will be listed on the BSE STAR Clearing System.The entire process of IPO Allotment will be carried out on this system.
Edited and published by Ashlyn Joy