The share price of this largest FMCG company tumbled around 1.3 percent after the Promoter group planned to sell a 1.24 stake in the company to comply with SEBI norms for minimum public holdings.
Adani Wilmar Ltd promoters i.e Adani Commodities LLP and Lence Pte Ltd have proposed a plan to divest part of their shareholding in the Adani Wilmar Ltd up to 1.24 percent of the total paid-up equity share capital that is aggregating to 1,61,16,014 Equity Shares.
The promoters of the Company have the intention to sell the Equity Shares to enable them to comply with minimum public shareholding norms.
The proposed divestment will be undertaken from December 26, 2023, till January 31, 2024, or the actual date of completion of the sale of all equity shares in one or more tranches. The company reported in its exchange filing.
As of the September quarter, the company promoter holds an 87.94 percent stake in the company, According to SEBI norms, the promoters should hold a maximum of 75 percent stake in any listed company, while the remaining 25 percent should be public float. While retail shareholders hold an 11.36 percent stake.
Adani Wilmar’s revenue has decreased by 13 percent yearly, from Rs 14,150 crore in Q2FY23 to Rs 12,267 crore in Q2FY24. During the same timeframe, Net profit has significantly declined from Rs 49 crore to a loss of Rs 131 crore.
Adani Wilmar shares are trading at a 41 percent discount from their 52-week high price of Rs 627.80 per share.
The company is a Joint venture between Adani and Wilmar Group of Singapore, an Agribusiness group. The company’s business is in edible oil, food & other FMCG segments. It is also engaged in industry essential segments viz. castor derivatives, Oleo derivatives De-oiled cake, etc.
The company sells its entire range of packed products in edible oils and Food & FMCG segment under the Brands viz. Fortune, King’s, Raag, Bullet, Fryola, Jubilee, Aadhaar, Kohinoor, Charminar and Trophy.
The company sells 12 percent of edible oil in India, with a 20% market share in branded consumer-packaged oils. The company markets its products under the brand name ‘Fortune’.’ Fortune has a brand value of almost Rs 20,000 crores.
Adani Wilmar is the leadership brand in the segment of No.1 Edible Oil player, No.2 Wheat Flour player, and No.3 Basmati Rice player.
At the time of writing this report, shares were trading at Rs 361.75 per share, down 0.94 percent from the previous close price.
Written by Omkar Chitnis
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