AWL Share Price Tumbled 9% After Announcement of 20% Stake Sale Through OFS

On January 10, 2025, AWL share price fell ~9% and reached the day low of ₹294.00 at 09:40 AM as compared to the previous close of ₹323.95 on BSE. The fall in AWL share price came after the company announced that its founder would be selling a stake through an Offer For Sale (OFS). Adani Commodities, the promoter entity of Adani Wilmar Limited (AWL) under the Adani Group, will sell 13.5% of its stake, amounting to ₹17.54 crore shares. This is the base issue size. Additionally, the company has a green shoe option to sell an extra 6.5% stake in the OFS.

Price and Timeline for the Adani Wilmar OFS

The price for the Offer For Sale (OFS) has been fixed at ₹275 per share, offering a 15% discount compared to Adani Wilmar’s closing price on Thursday. The OFS will open for non-retail investors on Friday, January 10, and for retail investors on Monday, January 13.

Adani Enterprises’ Exit from Joint Venture

In a related development, Adani Enterprises, the flagship company of the Adani Group, announced plans to exit its Joint Venture (JV) stake in Adani Wilmar. The company will sell 13% of its stake to meet minimum public shareholder requirements. The remaining 31% stake will be acquired by Wilmar International, the other promoter entity of Adani Wilmar.

As of the September quarter, Adani Commodities holds a 43.94% stake in Adani Wilmar, while Lence Pte., a subsidiary of Wilmar International, holds an identical 43.94% stake.

The stake currently held by Adani Enterprises in Adani Wilmar is valued at ₹18,500 crore (over $2 billion). This reflects the significant value of the company and the scale of the stake sale through the OFS.

Adani Wilmar Q3FY25 Business Update

During Q3 FY25, Adani Wilmar recorded a healthy volume growth of 6% YoY in spite of significant price hikes due to the increase in raw material costs. The company’s revenue for the quarter increased 33% YoY. With respect to the edible oils segment, the company managed to maintain its market share through its strategy of having a diverse portfolio of brands at various price points.

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