Following Adani Enterprises’ announcement about the termination of its joint venture with Singapore’s Wilmar group bringing a huge change in the share market. The price of Adani Wilmar shares fell by almost 8% in early trading on Tuesday. On the BSE, Adani Wilmar’s stock fell as high as 7.83% to ₹303.70 per share.
More than $2 billion will be raised by Adani Enterprises. It will be used to fund its main operations in utilities and energy.
According to Adani Enterprises, it will sell all 43.94% of its shares in Adani Wilmar Ltd. The flagship business of the Adani Group will sell its partner Wilmar International 31.06% of its shares. The remaining portion is going to be the general public. Through the deal, the public’s stake in Adani Wilmar will increase to the required minimum of 25%.
Adani Enterprises also stated in a statement
“AEL will use the proceeds from the sale to turbocharge its investments in the core infrastructure platforms in energy & utility, transport & logistics and other adjacencies in primary industry. AEL will continue to invest in infrastructure sectors which will further strengthen AEL’s position as India’s largest listed incubator of platforms playing the key macro themes underpinning India’s growth story,”.
At Monday’s market closing, Adani Wilmar’s market capitalization was ₹42,824 crore ($5 billion). That valued Adani’s ownership of the fast-moving consumer goods company at ₹18,817 crore ($2.2 billion). Nearly ₹50,000 crore was the company’s revenue at the end of FY24.
Only 12.13% of Adani Wilmar is now owned by public stockholders. Despite the firm being listed in February 2022.
The price of Adani Wilmar’s stock has dropped by more than 12% in just three months and 17% so far this year. Over the last two years, the stock of the Adani Group has fallen by more than 50%.
Adani Enterprises shares were down 2.18% at ₹2,536.95 a share at 9:50 AM. Hence Adani Wilmar shares were down 7.75% at ₹303.95 a share on the BSE.
