According to a Bloomberg report, Adani Enterprises and Wilmar International may soon begin selling their stake in Adani Wilmar. Sources indicate that this sale is likely to start in October to comply with shareholding regulations.
Why is the Stake Sale Necessary?
Adani and Wilmar currently hold a combined stake of 88% in Adani Wilmar, a joint venture they established in 1999. However, under SEBI regulations, they are required to bring their total holding down to 75% by February. SEBI rules mandate that at least 25% of a company’s shares must be available to the public within three years of listing. To comply with this, the companies are expected to sell around 13% of their minority stake in two phases, with the first phase potentially beginning next month.
Based on the closing price on September 16, the valuation of the 13% stake would be approximately $736 million.
Adani Wilmar’s Operations
Adani Wilmar processes essential food products under its well-known Fortune brand, including wheat flour, pulses, rice, and edible oils. The company operates 23 plants across 10 states in India, serving millions of customers across the country.
Stake Sale Plan and Investor Engagement
Advisors are expected to start reaching out to potential investors, not only in India but also in the U.S. and Southeast Asia, in the coming weeks. The sale process will likely take place in two tranches to meet the February deadline.
Conclusion
This stake sale is crucial for Adani Wilmar to comply with SEBI’s regulatory requirements and further enhance the company’s market presence by making more shares available to the public. Investors will be keenly watching how this impacts the company’s stock performance and future growth trajectory.
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