NEW DELHI: Adani group on Monday announced its complete exit from the
FMCG joint venture
Adani Wilmar, selling its entire stake to Singapore-based partner
Wilmar International
and through the open market, with total proceeds expected to surpass $2 billion.
Adani Enterprises Ltd, which owned a 43.94% stake in Adani Wilmar Ltd, has announced plans to sell a 31.06% stake to Wilmar International. Additionally, 13% stake will be sold in the open market to comply with minimum public shareholding norms.
The 31.06%
stake sale
to Wilmar is valued at Rs 12,314 crore, based on a maximum share price of Rs 305 per share. Including the stake sold through the open market, total proceeds are expected to exceed $2 billion (approximately Rs 17,100 crore).
The transaction is expected to be finalised by March 31, 2025, with the proceeds earmarked to accelerate the growth of AEL’s core infrastructure businesses.
“With this, AEL (Adani Enterprises Limited) will fully exit Adani Wilmar Ltd. Adani’s nominee directors will step down from the board of Adani Wilmar Ltd, the statement said.
“Adani Enterprises Ltd, Adani Commodities LLP (a wholly-owned subsidiary of AEL) and Lence Pte Ltd (a wholly-owned subsidiary of Wilmar International Ltd) have entered into an agreement on December 30, 2024, pursuant to which Lence will acquire all the paid-up equity shares of Adani Wilmar Ltd held by Adani Commodities as at the date of exercise of the call option or put option, as the case maybe, in respect of a maximum of 31.06 per cent of the existing paid up equity share capital of AWL,” it continued.
“It has been agreed between the parties that AEL will divest a 13 per cent share in Adani Wilmar to achieve compliance with minimum public shareholding requirements,” the statement added without giving details.
Following this deal, Adani has made a significant comeback, addressing concerns about liquidity. This marks the first major deal following the November indictment of founder chairman Gautam Adani and associates by US federal prosecutors regarding a $265 million renewable energy contract bribery case. The Adani group maintains its innocence and plans legal action.
Adani Wilmar Ltd operates as a 50-50 partnership between Adani Group and Singapore’s Wilmar. Together, they control 87.87 per cent of the company, exceeding the allowed 75 per cent threshold.
“It may be noted that with completion of these two legs, AEL would completely exit its near 44 per cent holding in Adani Wilmar,” the statement said, further adding that, “As of Friday, December 27, 2024, Adani Wilmar had a market capitalisation of Rs 42,785 crore ($5.0 billion).”
AEL, in a statement, said it will use “the proceeds from the sale to turbocharge its investments in the core infrastructure platforms in energy and utility, transport and logistics and other adjacencies in the primary industry”.
The organisation said it will sustain its infrastructure investments, reinforcing its position as India’s premier listed platform incubator, aligned with the country’s growth trajectory.
The divestment proceeds will enhance AEL’s incubation capabilities and strengthen its focus on consumer services in airports and Adani Digital.
This transaction showcases Adani’s financial prudence, with the group maintaining approximately 63 per cent equity relative to total assets, set to increase through this deal.
In recent months, various group entities secured substantial funding: AEL raised $ 500 million in October, while Adani Energy Solutions Ltd, Ambuja Cement, and Adani Green Energy Ltd raised $ 1 billion, $500 million, and $444 million respectively.
As of September 30, 2024, Adani Wilmar operates as an equal partnership, with both Adani Enterprises and Wilmar Group holding 43.94 per cent stakes.
The FMCG company reported consolidated revenue of Rs 51,555.24 crore in the previous fiscal year, with its market value reaching approximately Rs 42,000 crore ( $ 5 billion) on Monday.
The company went public in February 2022, raising Rs 3,600 crore through its IPO. Founded in 1999, Adani Wilmar produces Fortune brand cooking products including oil, wheat flour, pulses, rice and sugar, operating 23 facilities across 10 states.
