Last Updated on Feb 23, 2022 by Ayushi Mishra

Adani Wilmar (AWL) shares were frozen in the 10% upper circuit at Rs. 345.80 on the Bombay stock exchange (BSE) on Wednesday, with only buyers observing on the counter. The shares of the Adani Group edible oil giant closed at Rs. 314.40 on 22 February 2022, down 25% from its all-time high of Rs. 419.90 on 11 February 2022.

On the NSE and BSE, a total of 7.7 mn. shares had changed hands as of 10.10 am on 23 February 2022, and there were pending purchase orders for 1.02 mn. shares. The S&P BSE Sensex, on the other hand, was up 0.53% at 57,602 points.

On 8 February 2022, Adani Wilmar made its market debut. The firm raised Rs. 3,600 through its first public offering (IPO), in which it issued shares for Rs. 230 per share.

Adani Wilmar is India’s major maker of edible oil under the Fortune brand and is a joint venture between the Adani and Wilmar groups. Aside from oil, the corporation sells wheat flour, rice, lentils, sugar, and packaged goods.

Adani Wilmar reported a 66% q-o-q increase in its consolidated net profit of Rs. 211 cr. for the third quarter ended 31 December 2021 in its quarterly reports after listing on public markets (Q3 FY 2022). Consolidated sales increased by 41% q-o-q to Rs. 14,379 cr.

Adani Wilmar reached an overall sales volume of 1.26 mn. metric tonnes (mmt) during the quarter, with food and fast-moving consumer goods (FMCG) verticals achieving volumes of 0.17 mmt in Q3 of FY 2022, despite opening five new Fortune Mart stores. Adani Wilmar stated it purchased Bangladesh Edible Oil Limited (BEOL) by purchasing a 100% position in Adani Wilmar Pte Ltd (AWPTE), BEOL’s holding company, as part of its expanding footprint in South-East Asia.

Adani Wilmar may seek acquisitions in the edible oil and food industries in order to increase its footprint in southern regions dominated by regional enterprises. It plans to increase its market share by acquiring regional companies. BEOL’s purchase will assist it in expanding into the Bangladesh market and increasing edible oil manufacturing capacity. It is also looking to buy brands and businesses from food and FMCG firms, which would help it grow its product and brand portfolio and boost manufacturing capacity and distribution access, according to an IPO note from brokerage ICICI Securities.

Ayushi Mishra
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