Adani Wilmar rises 10% as Adani Ent spins off food-FMCG business into a single company
Shares of Adani Wilmar (AWL) rose 10 per cent to Rs 381.30 on the BSE in intraday trade on Friday amid heavy volumes. The rise in Adani Wilmar share price comes after Adani Enterprises (AEL) approved the demerger of its food FMCG (fast moving consumer goods) business to the company along with AEL’s strategic investment in Adani Commodities LLP.
The food FMCG business has become self-sufficient, performing well and is poised for further growth under Adani Wilmar. For Adani Enterprises Ltd, this arrangement will not only unlock shareholder value but also enable a focused strategy for sustainable growth in its incubating businesses, AEL said in a press release.
At 02:17 PM, the stock price of Adani Wilmar Ltd was trading 9 percent higher at Rs 380.50 as against a decline of 0.96 percent in the BSE Sensex. The average trading volume on the counter jumped almost four times with a combined 25.5 million shares changing hands on the NSE and BSE. The stock had touched a 52-week high of Rs 410 on Dec 6, 2023.
Meanwhile, shares of AEL fell 1 percent to Rs 3,176, after touching a low of Rs 3,114 in intraday trade.
The boards of Adani Enterprises Ltd, the flagship company of the Adani group, and Adani Wilmar Ltd, a food company, on Thursday approved the arrangement under which AEL will transfer its 43.94 percent stake in AWL to its own shareholders. This will see AEL’s existing shareholders hold shares directly in AWL. Following the demerger, AEL shareholders will receive 251 AWL shares for every 500 AEL shares, or in that ratio.
AWL is a joint venture between two global companies: the Adani Group, India’s leading energy and private infrastructure conglomerate, and the Wilmar Group Singapore, Asia’s leading agricultural business group.
The company is active in the FMCG sector, mainly comprising edible oil and food and other FMCG segments. The company is also active in key segments of the industry such as castor derivatives, Oleo derivatives and De-oiled cake, etc. The company has manufacturing facilities across the country and sells primarily in India.
The company markets its entire range of packaged products in edible oils and Food & FMCG segment under the following brands: Fortune, King’s, Raag, Bullet, Fryola, Jubilee, Aadhaar, Kohinoor, Charminar and Trophy. Its overseas subsidiaries are primarily engaged in trading and refining of crude edible oil. It markets its packaged products under various brands.
First print: 02 Aug 2024 | 15:04 IST