Adani Group Raises Rs 4,850 Crore by Selling 13.5% Stake in Adani Wilmar

By siliconindia  |  Saturday, 11 January 2025, 08:55:53 AM IST

Adani Group Raises Rs 4,850 Crore by Selling 13.5% Stake in Adani Wilmar
Adani Group has raised Rs 4,850 crore through the sale of a 13.5% stake in Adani Wilmar, marking a significant step in its strategy to exit non-core businesses and focus on its core infrastructure operations. The transaction aligns with the group’s commitment to meeting the Securities and Exchange Board of India’s (SEBI) minimum public shareholding (MPS) norms. Adani Commodities LLP, a subsidiary of Adani Enterprises Ltd (AEL), executed the offer for sale (OFS), which garnered robust demand from over 100 international and domestic investors, showcasing strong market confidence in the group’s financial strategies.
The OFS involved the sale of 17.54 crore shares to non-retail investors on January 10 and to retail investors on January 13, at a floor price of Rs 275 per share. An oversubscription option allowed for the sale of an additional 1.96 crore shares, increasing the total to 19.50 crore shares, representing 15.01% of Adani Wilmar’s total equity capital. Despite challenging market conditions, the transaction was completed successfully, with key indices like the Sensex and Nifty Midcap 100 showing declines on the day of the sale.
The proceeds from the stake sale will enable the Adani Group to bolster its investments in core infrastructure businesses, including airports, roads, data centers, and green hydrogen projects. With the successful completion of this transaction, Adani Wilmar has achieved compliance with SEBI’s MPS norms. The promoters now hold 74.37% of the company’s equity, while public shareholders hold the remaining 25.63%. This development represents a major step forward for Adani Wilmar, a joint venture between Adani Group and Singapore-based Wilmar International Ltd, which previously held a combined 87.87% stake in the company, exceeding the regulatory limit of 75%.
This stake sale is the first phase of Adani Group’s planned exit from Adani Wilmar. In December 2024, the conglomerate announced its intention to sell up to 40.37 crore shares, or a 31.06% stake, to Wilmar International Ltd at a price not exceeding ₹305 per share. The exact number of shares to be sold in the second phase will depend on the response to the OFS. The transaction is expected to conclude by March 31, 2025, enabling Wilmar to assume full operational control of Adani Wilmar.
Established in 1999, Adani Wilmar is a leading player in India’s fast-moving consumer goods (FMCG) sector, producing Fortune-branded cooking oils, wheat flour, pulses, rice, and sugar. The company operates 23 manufacturing plants across 10 states and recorded a consolidated total income of ₹51,555.24 crore in the last fiscal year. Its current market capitalization stands at approximately Rs 42,000 crore (around USD 5 billion). The company debuted on the stock exchanges in February 2022, raising Rs 3,600 crore through its initial public offering (IPO).
The Adani Group’s decision to exit Adani Wilmar is part of a broader strategy to realign its business portfolio. This financial year, the group has raised a total of USD 3.15 billion through a combination of equity and debt. In October 2024, AEL secured USD 500 million through the qualified institutional placement route, building a war chest of USD 2.5 billion to fund its core infrastructure projects. These funds are expected to fuel growth in critical areas, including green hydrogen and data center initiatives, reflecting the group’s commitment to sustainability and innovation.
The transaction comes amidst allegations against the Adani Group related to a USD 265-million bribery scheme, filed by U.S. federal prosecutors in November 2024. The group has denied the allegations, calling them baseless and vowing to pursue legal recourse. Despite these challenges, the successful execution of the OFS underscores the group’s resilience and ability to attract significant investor interest, even in a volatile market environment.
Advisors to the OFS included SBI Capital, Jefferies, ICICI Securities, Nuvama, Antique, and Monarch Capital. The transaction highlights the Adani Group’s ability to efficiently raise capital while complying with regulatory norms, demonstrating its focus on strengthening its infrastructure portfolio. As the group moves forward, the phased exit from Adani Wilmar represents a pivotal step in its strategy to streamline its business operations and focus on core growth areas.

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