Updated Dec 31, 2024 09:45 IST
Adani Wilmar share price: What lies ahead for Fortune oil producers after Adani Group exit? (Photo: Now)
The stock subsequently fell by nearly Rs 7.50 in the first 10 minutes of trade to hit a low of Rs 304.25. At 9:26 a.m., 1.259 million shares of the company’s stock were transferred.
Adani to sell stake in Adani Wilmar
Adani Wilmar comes a day after billionaire Gautam Adani’s group announced it is exiting its FMCG joint venture Adani Wilmar by selling its entire stake to a Singaporean partner in the open market for an estimated value of more than $2 billion. Stocks succumbed to selling pressure.
Adani Enterprises, which held a 43.94% stake in Adani Wilmar, a manufacturer of Fortune brand edible oils, flour and other food products, has announced that it will sell 31.06% of its stake to Wilmar International. Approximately 13% will be sold on the open market to meet minimum public shareholding requirements. Adani will sell 31.06% stake to Wilmar for Rs 12,314 million (share price below Rs 305 per share). Adding the share sale through OFS, the total proceeds will be over USD 2 billion (approximately Rs. 17,100 crore).
Adani Wilmar Co., Ltd.
“AEL (Adani Enterprises Limited) will now fully exit Adani Wilmar Ltd,” the company said, adding that Adani’s named directors will step down from Adani Wilmar’s board of directors. The transaction is expected to close by March 31, 2025.
Adami Wilmar stock price target 2025
Meanwhile, JP Morgan maintained an underwight rating on Adani Wilmar shares with a price target of Rs 320.
Investec maintains a hold rating on the stock with a price target of Rs 397. He said single promoter ownership is a positive outcome. The broker expects the entire transaction to close within the required 12 months.
He noted that the company has a stable and professional management team reporting to the board, and that changes are unlikely to occur.
Adani Wilmar is a joint venture of equals between Adani Group and Singapore-based commodity trader Wilmar. Both partners now own a total of 87.87% of Adani Wilmar shares, well above the maximum allowed of 75%.
Founded in 1999, Adani Wilmar manufactures Fortune brand edible oils, flours, pulses, rice and sugar. The company has 23 factories in 10 states.
(Disclaimer: The above article is for informational purposes only and should not be considered investment advice. ET NOW DIGITAL advises readers/viewers to consult a financial advisor before making any money decisions. )
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