Shares of Adani Wilmar, a key player in the FMCG and edible oil market, faced a sharp decline of 9.5%, closing at ₹292.65 on January 10, 2025. The slump was spurred by the announcement of a 20% stake sale by its promoter, Adani Commodities LLP, via an Offer for Sale (OFS).
The OFS is a two-day process, starting with bids from non-retail investors on January 10, followed by retail investors on January 13. The floor price for the OFS is set at ₹275, a 6% discount to the day’s lowest price.
Also read: List of FMCG Stocks in India 2025
Why is Adani Wilmar divesting its stake?
This move is part of a broader restructuring within the Adani Group. Adani Enterprises, the parent company, plans to exit its joint venture with Wilmar International.
- Adani Commodities LLP, which currently holds 43.94% stake, will reduce its holding by 13.5%.
- The sale could increase to 20% if the oversubscription option is exercised.
- Wilmar International will acquire the remaining 31% stake, making Adani Wilmar a wholly Wilmar-controlled entity.
This sale aligns with regulatory requirements for minimum public shareholding while streamlining Adani Enterprises’ portfolio.
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Adani Wilmar’s financial performance
Despite the market turmoil, Adani Wilmar has demonstrated strong financial performance:
| Metric | Q3 FY25 |
| Revenue | ₹18,500 crore |
| Edible Oil Volume | 4% |
| Food & FMCG Revenue | 22% |
| Industry Essentials Revenue | 6% |
OFS details at a glance
| Parameter | Details |
| Base Offer Size | 13.5% (17.54 crore shares) |
| Oversubscription Option | Additional 6.5% (8.44 crore shares) |
| Floor Price | ₹275 |
| Dates for Non-retail | January 10, 2025 |
| Dates for Retail | January 13, 2025 |
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How is the market reacting?
Over the past three trading sessions, Adani Wilmar shares have slid by 11%, with Friday’s 9% drop marking the steepest decline.
- Short-term outlook: The share price is expected to remain volatile as the OFS progresses.
- Long-term sentiment: Analysts remain divided, with the average target price set at ₹381, indicating a potential 18% upside.
Key implications of the stake sale
Positive outcomes
- Regulatory compliance: The sale ensures adherence to minimum public shareholding norms.
- Focus on core businesses: Adani Enterprises’ exit could allow Wilmar to streamline operations.
Potential risks
- Stock dilution: The additional supply of shares may put downward pressure on the stock price.
- Market sentiment: Short-term investor confidence may waver due to the promoter’s reduced stake.
Bottomline
The Adani Wilmar share price decline underscores the market’s cautious reaction to significant promoter stake sales. While the ₹275 floor price offers a discount, the long-term impact of this divestment depends on Wilmar International’s ability to drive growth post-restructuring.
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