Indian Adani Wilmar valued at around $4.5 billion on market debut

The Adani Group logo is seen on the facade of one of its buildings on the outskirts of Ahmedabad, India April 13, 2021. REUTERS/Amit Dave

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BENGALURU, Feb 8 (Reuters) – Shares of India’s top edible oil maker Adani Wilmar Ltd (ADAW.NS) rose 13.5% on their market debut on Tuesday, valuing the company at 339.28 billion rupees ($4.54 billion).

The listing on the National Stock Exchange comes amid broader equity volatility as central banks around the world tackle high inflation and expectations of higher interest rates push foreign investors out of markets. nationals.

The company’s shares opened at 227 rupees, a 1.3% discount to the initial public offering price of 230 rupees, before climbing as high as 261 rupees. The stock was trading up 10.7% at 254.8 rupees at 0659 GMT.

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The IPO was reduced to Rs 36 billion and at the end of January the offering was subscribed 17.37 times.

Adani Wilmar is a joint venture between Adani Group, chaired by billionaire Gautam Adani, and Singaporean agribusiness Wilmar International Ltd (WLIL.SI).

The company offers products in three categories: edible oil, packaged foods and industry essentials such as wheat flour, rice and pulses. He is best known for his “Fortune” brand of cooking oil.

Shares of Adani Wilmar were listed at a discount “due to weaker secondary market sentiment over the past few trading sessions,” said Likhita Chepa, senior research analyst, CapitalVia Global Research Limited.

“Given (the company’s) wide distribution, sound financials, strong brand recall, growing reach and household consumption, its long-term outlook appears optimistic.”

The company, which has 22 plants located in 10 states across the country, will use proceeds from the IPO to primarily fund its capital expenditure needs and to pay down debt.

JP Morgan India, BofA Securities India, ICICI Securities and HDFC Bank are among the top bookrunners for the IPO.

($1 = 74.6800 Indian rupees)

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Reporting by Chandini Monnappa and Anuron Kumar Mitra in Bengaluru; Editing by Shailesh Kuber

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