Gautam Adani Announces Divestment of 44% Stake in Adani Group

Adani Enterprises, the flagship company of Adani Group, is set to sell its stake in Adani Wilmar in the upcoming months. According to reports, Adani Enterprises can divest its 44% stake in Adani Wilmar. Currently, both companies hold approximately 44% stake each.

In the coming months, Adani Enterprises, the flagship company of the Adani Group, can sell its stake in Adani Wilmar. According to reports, Adani Enterprises can divest its 44% stake in Adani Wilmar. Currently, both companies hold approximately equal shares of around 44% each.

Adani Enterprises, the flagship of Adani Group, is reportedly considering consolidating its nearly 44% stake in Adani Wilmar, potentially amassing a consolidated corpus of approximately $2.7 billion based on current share prices. It is noteworthy that Adani Wilmar operates in the food sector under the brand name ‘Fortune.’ On Tuesday, the company’s shares were trading at INR 393.05.

Gautam Adani and his family may choose to capitalize on their personal capacities by further expanding their ownership. However, this decision rests with individual perspectives. Meanwhile, Kuok Khoon Hong, the co-founder of Wilmar and a prominent industrialist from Singapore, is expected to make a decision about his stake in the coming days. It is important to clarify that no official proposal has been put forth by either Adani Group or Adani Wilmar in this matter.

Adani Wilmar’s shares have witnessed a decline of 36% as the Hindenburg Research report has rattled Adani Group’s companies. Adani Wilmar has also not remained untouched by this development. In the year 2023, there has been a decrease of 36% in the value of Adani Wilmar’s shares. Currently, the company’s market capitalization has dropped to $6.2 billion.

The company incurred losses in the June quarter. Adani Wilmar had conducted its IPO in 2022, issuing shares in the primary market at INR 36 apiece. Notably, the company faced challenges during the June quarter. Between April and June 2023, the company’s substantial losses amounted to $790 million. The company is experiencing turbulence due to declining food prices and increased inventory expenses.

Adani Wilmar raised approximately $36 billion in its initial public offering (IPO) in 2022. The company is a joint venture between Adani and Wilmar, with their combined stake constituting around 88% of the company’s shares. Security and Exchange Board of India (SEBI) regulations mandate that large companies must publicly list at least 25% of their shares within five years of the listing date.

Adani Wilmar is a fast-moving consumer goods (FMCG) company that offers essential food items like edible oils, wheat flour, pulses, salt, and sugar to Indian consumers, according to its website. Established in 1999, the company’s annual report states that its production reaches over 114 million households through more than 10,000 distributors.