The share of the fast-growing FMCG company plummeted by 10 percent after the company’s promotor is set to offload 17,54,56,612 Equity Shares of the company.
With a market capitalization of Rs 38,444.49 crore, the shares of Adani Wilmar Ltd were trading at Rs 295.50 per share, decreasing around 9 percent as compared to the previous closing price of Rs 323.95 apiece.
Reason for Rise
The company shares have seen bearish movement after Adani Commodities LLP, a promoter, plans to sell up to 13.50% equity shares (17,54,56,612 shares) on January 10, 2025, for non-retail investors, and January 13, 2025, for retail and carry-forward bids. An oversubscription option of 6.50% (8,44,79,110 shares) may increase the total to 20% equity through NSE and BSE.
Moreover, the floor price for the issue has been fixed at Rs 275 per share. The OFS will open for non-retail investors on January 10, and for retail investors on January 13.
However, Adani Commodities LLP holds 57,10,19,435 equity shares which is equivalent to 43.94 percent in the company as of September 2024.
Financial conditions
Looking into the company’s financial condition, revenue jumped by 19 percent from Rs 11,720 crore in Q2FY24 to Rs 13,994 crore in Q2FY25, however during the same period of time, net profit magnified drastically by 474 percent from a loss of Rs 87 crore to a profit of Rs 326 crore.
Segment Performance
The company reported strong growth in Edible Oil (21% revenue, 17% volume growth) with a ₹373 crore PBT turnaround, driven by soya bean, sunflower, and mustard oil. Food and FMCG revenue grew 34% (₹1,718 crore), leveraging Edible Oil distribution for branded products exceeding ₹1,500 crore. Industry Essentials degrew 9%.
Bangladesh operations
Bangladesh operations reported a ₹51 crore loss in H1 FY25, reflecting ongoing challenges. While the new government shows signs of improvement, management remains cautious, anticipating limited profitability recovery within the current fiscal year.
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Market Share and Distribution
The Edible Oil market share grew from 16.12% to 16.2%, while Wheat Flour rose from 4.42% to 5.25%. The company directly reaches 770,000 retail outlets and aims to expand to 50,000 towns by March 2025, strengthening its distribution network and market presence.
Future Outlook
Management remains optimistic about sustaining growth in the Edible Oil and Food segments, with expectations of improved Q3 demand during the marriage season. The company targets Food and FMCG turnover of ₹10,000 crores by FY27, driven by robust demand and strategic growth initiatives in these key segments.
Company Profile
Adani Wilmar Limited offers kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses, and sugar. Additionally, it has a branded health and convenience product portfolio that includes Rice Bran oil, Blended oil, soya nuggets, biryani kit, and khichdi.
Written by Abhishek Singh
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