Adani Wilmar OFS: Stock in focus as floor price set at Rs 275; key details

Shares of Adani Wilmar Ltd are in focus on Friday morning as the two-day offer for sale (OFS) by one of the promoters, Adani Commodities LLP, kicks off today. Adani Commodities LLP has proposed to sell up to 17,54,56,612 shares in the company, representing 13.50 per cent of the total issued and paid up equity share capital of the Adani Wilmar at a floor price of Rs 275. This was at 15.11 per cent discount to Adani Wilmar's Thursday closing price of Rs 323.95.

Non-retail investors can participate in the OFS on January 10 while retail investors will be allowed to bid on January 13. Non-retail investors may indicate their willingness to carry forward their unallotted bids to Monday for allocation to them, in the unsubscribed portion of retail category.

Adani Commodities LLP may sell up to 8,44,79,110 additional shares, representing 6.50 per cent of the total issued and paid up equity share capital of the company.

"In the event that the Oversubscription Option is exercised, the Equity Shares forming part of the Base Offer Size and the Oversubscription Option will represent 20.00% of the total issued and paid up Equity Share capital of the company (held in dematerialized form in demat accounts with the relevant
depository participant), i.e. 25,99,35,722 Equity Shares, and will collectively, hereinafter be referred to as Offer Share," Adani Wilmar said.

Adani Enterprises is looking to sell entire its entire 44 per cent stake for $2.2 billion. Ventura Securities recently said the strategic sale of Adani Wilmar Ltd looks all set to enhance Adani Enterprises' liquidity. The proceeds, which could be leveraged for 2 times debt, will enable Adani Enterprises to raise additional debt of Rs 35,000–36,000 crore, creating a formidable Rs 50,000– 52,000 crore corpus, Ventura said.

"At a portfolio level, the Adani Group's equity deployed as a percentage of overall assets currently stands at 63 per cent and will increase further following this transaction. This highlights the group’s consistent focus on maintaining a healthy capital structure and a robust capital management," it said.

Adani Wilmar told stock exchanges that the offer is being undertaken by the seller for, inter-alia, achieving the minimum public shareholding of the company as prescribed under Rule 19(2)(b) and Rule 19A of the Securities Contracts (Regulation) Rules, 1957, as amended, and Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Further, the company also has a market capitalisation of above Rs 1,000 crore, with the threshold of market capitalisation being computed as the average daily market capitalisation for a period of six months prior to the month in which the offer will open.