Adani Wilmar is a joint venture between Adani Group and the Wilmar Group, Adani Wilmar is an FMCG food company offering most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. The company also offers a diverse range of industry essentials, including oleochemicals, castor oil and its derivatives, and de-oiled cakes. The company’s products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups.

The company’s product portfolio is categorized into

Edible oil,
Packaged food and FMCG, and
Industry essentials.

“Fortune”, the company’s flagship brand, is the largest selling edible oil brand in India. Recently the company has focused on value-added products and has launched products such as edible oil products, rice bran health oil, fortified foods, ready-to-cook soya chunks, and khichdi, etc in line with this. The company has strong raw material sourcing capabilities and was India’s largest importer of crude edible oil as of March 31, 2020.

As of the date of this Draft Red Herring Prospectus, the company operates 22 plants located across 10 states in India, comprising 10 crushing units and 18 refineries. The company’s refinery in Mundra is one of the largest single-location refineries in India with a capacity of 5,000 MT per day. In addition to the 22 plants Adani Wilmar, also used 28 leased tolling units as of March 31, 2021, for additional manufacturing capacities. The company’s distributors are located in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets.

Adani Wilmar Limited IPO Objective

Funding capital expenditure for expansion of existing manufacturing facilities and developing new manufacturing facilities (“Capital Expenditure”);
Repayment/prepayment of borrowings;
Funding strategic acquisitions and investments; and
General corporate purposes.

POSITIVES

Leadership in branded edible oil and packaged food business in India.
One of the largest basic oleochemical manufacturers in India in terms of revenue, and the largest manufacturer of stearic acid and glycerine in India.
Mundra is the one of the largest single location refineries in India with a designed capacity of approximately 5,000 tonnes per day.
Pan-India distribution network supported by a robust distribution infrastructure.
Fortune, the company’s flagship brand, is the largest selling edible oil brand in India
Professional management and very experienced board.
One of the fastest growing packaged food companies in India.

NEGATIVE

Dependence on the edible oil segment for a significant portion of revenue.
Fluctuations in the prices of commodities might affect the profitability of the company
Unfavourable local and global weather patterns may have an adverse effect on our business, results of operations and financial condition.

ADANI WILMAR LIMITED IPO DETAILS

Subscription Dates	Jan 27, 2022 – Jan 31, 2022
Price Band	₹218 – ₹230 per share
Fresh issue	₹ 3600 crore
Offer For Sale	NIL
Total IPO size	₹ 3600 crore
Minimum bid (lot size)	65 shares
Face Value	₹1 per share
Retail Allocation	35%
Listing On	NSE, BSE
Employee Discount	Rs 21
Minimum Investment	₹14,950
Maximum Investment (Retail)	₹194,350

ADANI WILMAR LIMITED IPO TIMELINE

IPO Open Date	27 Jan 2022
IPO Close Date	31 Jan 2022
Basis Of Allotment Date	3 Feb 2022
Initiation Of Refunds	4 Feb 2022
Credit Of Shares To Demat ACcount	7 Feb 2022
IPO Listing Date	8 Feb 2022

So, how does ADANI WILMAR LIMITED IPO Fare in Terms of Financials?

Financial Details in Crores

	31-Mar-19	31-Mar-20	31-Mar-21
Total Assets	11,602.8	11,785.9	13,326.6
Total Income	28,919.7	29,767.0	37,195.7
Profit After Tax	375.5	460.8	727.6
Net margin (%)	1.3	1.5	2.0

FINANCIAL REVIEW

Total Assets constantly increases YOY from FY19-FY21
Profit after tax increases by 57.8% in FY21 in comparison to FY20
Total income and Margin also increases continuously from FY19-FY21
Overall financial of Adani Wilmar IPO is very attractive

ADANI WILMAR LIMITED IPO VALATIONS

Face Value = RS 1 Per Equity Share
Earnings Per Share (EPS) = 6.37
PE Ratio = 34.22 – 36.11
Return on Net Worth (RONW) = 22.06
ROCE(%) = 11.06
Debt To Equity Ratio = 0.39
Book Value(NAV) = 28.86
Upper Offer Price to Book Value = 7.96

VALUATION REVIEW:

PE is 35 and Upper Price to Book Value is around 8
Debt to equity ratio is just 0.39 is very impressive
EPS & RONW is also good.
Overall it’s fair valued IPO and at same time there is huge scope of Listing gains

ADANI WILMAR LIMITED IPO – SWOT ANALYSIS

Strengths

Diversified Portfolio: This company boasts of having a differentiated product portfolio. Accordingly, it allows the company to maintain a smooth cash flow from different product segments.
Business Model: The integrated business model of this company allows it to tap on the current market trends and FMCG prospects as and when required. It leverages the Adani Group operational facilities, strong PAN-India distribution network and extensive manufacturing capacity to boost its production.
ESG Friendly Policies: In the last couple of years, this company has been proactively contributing towards achieving environmental and social sustainability. This continues to garner the attention of the pro-ESG investors.

Weaknesses

Dependency on Adani Group: The company is overdependent on the operational units of Adani Group. This could emerge as a bottleneck in the production process if management goes awry.

Diversification: Currently, this company boasts of a well-diversified portfolio. However, with all the ongoing research in this field coupled with the company’s ability to expand product division, we can expect its profile to grow even further.
Growth: This company’s strong financial standing and robust parentage work in its favour. These factors also emerge as reliable upsides with regards to its long-term and organic growth in the edible oil and FMCG space in general.

Opportunities

Diversification: Currently, this company boasts of a well-diversified portfolio. However, with all the ongoing research in this field coupled with the company’s ability to expand product division, we can expect its profile to grow even further.
Growth: This company’s strong financial standing and robust parentage work in its favour. These factors also emerge as reliable upsides with regards to its long-term and organic growth in the edible oil and FMCG space in general.

Threats

Competitive Market: The company faces competition from its market peers. Further, with the entry of a new FMCG player in the sector, the scope of increasing market share is becoming limited. This is also creating pressure on the company in terms of retaining its existing customers.
Drop in Demand: A potential drop in the demand for edible oil is a significant threat. It can impact the overall revenue generation and market share of the company in a broader sense.

COMPETITIVE ANALYSIS: MARKET PEERS

Name of the Company	Total Income (million)	Face value	Basic EPS	PE	NAV
Adani Wilmar Limited*	371,956	1	6.37	36.11	28.86
Hindustan Unilever Limited	470,280	1	34.03	68.57	202.99
Britannia Industries Limited	131,361	1	77.40	44.23	148.80
Tata Consumer Products Limited	116,020	1	9.30	81.32	169.57
Dabur India Limited	95,617	1	9.55	62.90	43.57
Marico Limited	80,480	1	9.08	60.21	25.23
Nestle India Limited	133,500	10	215.98	81.96	209.44

ADANI WILMAR LIMITED IPO GMP

Grey market premium as on 02-02-2022= Rs 40 /Share
Grey market premium as on 01-02-2022= Rs 40 /Share
Grey market premium as on 31-01-2022= Rs 40 /Share
Grey market premium as on 30-01-2022= Rs 40 /Share
Grey market premium as on 29-01-2022= Rs 50 /Share
Grey market premium as on 28-01-2022= Rs 50 /Share
Grey market premium as on 27-01-2022= Rs 50 /Share
Grey market premium as on 26-01-2022= Rs 50 /Share
Grey market premium as on 25-01-2022= Rs 50 /Share
Grey market premium as on 24-01-2022= Rs 70 /Share
Grey market premium as on 22-01-2022= Rs 100 /Share
Grey market premium as on 21-01-2022= Rs 100 /Share
Grey market premium as on 20-01-2022= Rs 100 /Share
Grey market premium as on 19-01-2022= Rs 110 /Share

Disclaimer:

IPO Grey Market Premium (ADANI WILMAR LIMITED IPO GMP) mention is valid for the specific date as mentioned in the header.
We are not buying and selling IPO forms on IPO Grey Market.
Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.

ADANI WILMAR LIMITED IPO Live Subscription Status

31 January 2022 5:00 PM

Category	Shares Offered
		Day 1	Day 2	Day 3
QIB	28,743,118	0.30	0.42	2.01
NII	21,557,340	0.53	0.93	18.25
Retail	50,300,459	0.96	1.95	2.24
Employee	5,431,472	0.05	0.19	0.29
Shareholders	16,513,761	0.10	0.92	13.99
Total	122,546,150	0.57	1.20	6.50