The company announced in an exchange filing on Monday That It plans to withdraw from Adani Wilmar, the FMCG joint venture between its subsidiary Adani Commodities LLP (ACL) and Wilmar International-owned Lence Pte, to concentrate investments on its core infrastructure business.
It stated that the $2 billion raised from selling its Adani Wilmar stake would be utilized to “turbocharge its investments in the core infrastructure platforms in energy & utility, transport & logistics, and other adjacencies” at the Adani Group flagship company, AEL.
The statement continued that AEL’s position as India’s largest listed incubator of platforms that play the main macro themes driving India’s growth story would be further strengthened by its continued investments in infrastructure sectors.
There will be two stages to the exit. In order to comply with the minimum public shareholding requirements, Adani Enterprises would sell 13% of its shares, while Lence will purchase a 31.06% stake in ACL through a call-and-put option.
According to Adani Wilmar’s filings to the exchanges about the sale of ACL’s stake in the FMCG JV, “the price of shares (is) to be mutually agreed by the parties in writing, provided that such price per share shall not exceed Rs 305.”
On Monday, Adani Wilmar’s shares dropped 0.17% to close the day at Rs 329.5 per share. As of December 30, its market value was Rs 42,824 crore. At the close of trading on Monday, the price of Adani Enterprises’ shares went up 7.65% to Rs 2,593.45 per share.
The company was founded in 1999 as a joint venture between ACL of the Adani Group and Lence Pte of Wilmar International, a Singaporean company. Its products in the FMCG sector include rice grains, pulses, soy chunks, food oils, and household and personal cleaning supplies. It runs companies like Kohinoor and Fortune.
Adani Wilmar’s edible oils division generated the majority of its Rs 14,460 crore in sales revenue for the quarter that ended on September 30. The quarter’s net profit was Rs 311 crore, while earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled Rs 613 crore.
It went public in February 2022. Prior to Adani’s withdrawal statement, ACL and Lence owned 43.94% of the business as of the announcement date.
