Adani Enterprises Limited announces IPO of Adani Wilmar Ltd

Adani Enterprises Limited ("AEL" or the "Company") has announced that Adani Wilmar Limited ("AWL"), a 50:50 joint venture company between the Adani group ("Adani") and the Wilmar group, has today filed its draft red herring prospectus with the Securities and Exchange Board of India ("SEBI") in relation to its proposed Initial Public Offering (the "IPO") for listing on BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE"), (NSE, together with BSE, the "Stock Exchanges").

AWL is one of the few large FMCG food companies in India to offer most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses and sugar under a diverse range of brands across a broad spectrum.

The proposed listing of AWL on the Stock Exchanges (the "Proposed Listing") will comprise an IPO in the form of fresh issue of new equity shares by AWL for an amount of upto INR 45,000 million (approximately USO 600 million) (the "IPO Shares"). There will not be any secondary offering. The net proceeds from the IPO are proposed to be used by AWL for the following purposes:

(1) to fund capital expenditure for expansion of AWL's existing manufacturing facilities and developing new manufacturing facilities;

(2) repayment/prepayment of borrowings;

(3) to fund strategic acquisitions and investments; and

(4) general corporate purposes.

The Proposed Listing is intended to further the growth of AWL's operations by increasing its market visibility and awareness among current and potential customers.

The Proposed Listing and issue price of the IPO Shares are subject to many factors, including but not limited to the book building process under Indian regulations, receipt of applicable approvals and external factors such as price/earnings ratio, level of investor interest, prevailing market conditions and certain other considerations. As there is no assurance that the Proposed Listing will proceed, shareholders and potential investors are advised to exercise caution when dealing with the securities of the Company.

Shares of Adani Enterprises Ltd. was last trading in BSE at Rs. 1437.25 as compared to the previous close of Rs. 1420.9. The total number of shares traded during the day was 266470 in over 7670 trades.

The stock hit an intraday high of Rs. 1444 and intraday low of 1424. The net turnover during the day was Rs. 382128718.

Source : Equity Bulls

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