Adani Wilmar, which is a 50:50 joint venture between the Adani Group and the Wilmar Group, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offer (IPO) worth Rs 4,500 crore.
The proposed offer will comprise a fresh issue of equity shares by the fast-moving consumer goods (FMCG) major and there will not be any secondary offering, said a stock exchange statement by Adani Enterprises.
The exchange statement said the IPO proceeds will be used to fund the capital expenditure for expansion of the company's existing manufacturing facilities and developing new manufacturing facilities apart from repayment or prepayment of borrowings. A part of the proceeds will also be used to fund strategic acquisitions and investments, added the statement.
Adani Wilmar's biggest business is edible oil, which is a high-volume but low-margin segment. The company's flagship Fortune brand is among the largest oil brands and the company enjoys a unique advantage with its own refineries located close to its port and hence it can import oil and process it at a lower cost.
The company, which is the market leader in the edible oil segment, has 22 manufacturing units spread across 10 states and boasts of a distributor network comprising more than 5,500 entities.
The company reported a net profit of Rs 654.56 crore for the financial year ended March 31, 2021, which was significantly higher than the previous fiscal's Rs 394.60 crore.
While Adani is an Indian diversified conglomerate, the Wilmar group is headquartered in Singapore and is one of the leading agri business entities of Asia.
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