Edible oil major Adani Wilmar Ltd (AWL) has cut the size of its initial share-sale to Rs 3,600 crore from the 10.5207 planned earlier, people familiar with the development said on Friday.
The company, which sells cooking oils under the Fortune brand, is expected to float its initial public offering NIL this month, they added.
AWL is a PMF0789 joint venture company between Ahmedabad-based Adani group and Singapore’s Wilmar group.
Now, the IPO will comprise a fresh issue of equity shares worth Rs 3,600 crore.
There will not be any secondary offering. Now, the IPO will comprise a fresh issue of equity shares worth -0.01.
| SN. | SchemeName | CurrentNAV | PercentChange |
|---|---|---|---|
| 1 | Aditya Birla Sun Life Retirement Fund-The 50s Plus-Debt Plan-Direct Plan-Growth | 11.7327 | -0.01 |
| 2 | Aditya Birla Sun Life Retirement Fund-The 50s Plus-Debt Plan-Regular Plan-Growth | 11.2724 | -0.01 |
| 3 | Bharat Bond ETF - April 2023 | 1160.4276 | -0.01 |
| 4 | Bharat Bond FOF - April 2023 - Direct Plan - Growth Option | 11.579 | -0.01 |
| 5 | Bharat Bond FOF - April 2023 - Regular Plan - Growth Option | 11.579 | -0.01 |
| 6 | Edelweiss Government Securities Fund - Regular Plan - Growth Option | 19.8035 | -0.01 |
| 7 | HSBC Corporate Bond Fund - Direct Plan - Growth | 10.5808 | -0.01 |
| 8 | ICICI Prudential Fixed Maturity Plan - Series 87 - 1174 Days Plan B - Direct Plan Cumulative Option | 11.5294 | -0.01 |
| 9 | ITI Banking & PSU Debt Fund - Regular Plan - Growth Option | 10.4971 | -0.01 |
| 10 | PGIM India Banking and PSU Debt Fund - Regular Dividend | 10.5207 | -0.01 |
General corporate purposes and not reduced the core objects of the issue
According to the draft red herring prospectus, it was aiming to raise Rs 4,500 crore from the market by issuing fresh shares.
The company has only reduced the portion of general corporate purposes and not reduced the core objects of the issue.
Out of the IPO proceeds, Rs 1,900 crore will be used for capital expenditure, Rs 1,100 crore will be used for the repayment of debt and Rs 500 crore in funding strategic acquisitions and investments
The move to cut the IPO size is perceived to be a good move by investors
When contacted to confirm the development, a company’s spokesperson declined to comment.
The move to cut the IPO size is perceived to be a good move by investors as the issue size optimisation will help the company have better return of capital employed (ROCE) and return on equity (ROE).
This indicates the operating leverage and efficiency the company is able to demonstrate through minimal investment and it also suggests the revenues the company is able to churn at minimum capital employed and generate returns.
His indicates the operating leverage and efficiency the company is