Adani Wilmar cuts IPO size before launch!
If you are waiting for the launch of IPO of Gautam Adani’s company Adani Wilmar Limited (AWL), then this news is for you. According to the news of news agency PTI, Adani Wilmar Limited has reduced the size of its IPO. The company had earlier planned an IPO size of Rs 4,500 crore, which has now been reduced to Rs 3,600 crore.
When is the IPO coming: According to agency sources, the IPO of Adani Wilmar, which sells cooking oil under the Fortune brand, is expected to be launched in this month. Of the proceeds of the IPO, Rs 1,900 crore will be used for capital expenditure. At the same time, Rs 1,100 crore will be used to repay debt and Rs 500 crore will be used to finance strategic acquisitions and investments.
Good move for investors: The move to cut IPO size is considered good for investors. Issue size optimization increases the company’s expectation of better return on capital employed (ROCE) and return on equity (ROE).
Let us inform you that Adani Wilmar is a 50:50 Joint Venture Company between Ahmedabad-based Adani Group and Singapore-based Wilmar Group. The revenue of this company is Rs 37,195 crore. It is one of the leading food FMCG companies in India. After the IPO, this will be the 7th company of the Adani Group, which will be listed in the stock market.
