Adani Wilmar's OFS Opens, Shares Slide 9% On Discounted Pricing

Shares of Adani Wilmar Ltd plunged sharply on Friday, losing around 9% of their value as the much-anticipated two-day offer for sale (OFS) by promoter entity Adani Commodities LLP commenced. The steep decline followed the announcement of a floor price for the OFS at ₹275 per share, approximately a significant 15% discount to the stock's Thursday closing price of ₹323.45. As a result, the stock fell to an intraday low of ₹292.10 on the NSE.

According to BSE filing, the OFS, launched on January 10, 2025, is aimed at offloading up to a 20% stake in Adani Wilmar. This includes a base issue size of 13.5%, or 17.54 crore shares, with an additional 6.5%, or 8.44 crore shares, available through an oversubscription option. The sale is part of the company's efforts to comply with regulatory norms regarding minimum public shareholding requirements, as per the Securities Contracts (Regulation) Rules, 1957, and SEBI's Listing Obligations and Disclosure Requirements Regulations.

Adani Wilmar's two-day OFS is structured to ensure participation from both non-retail and retail investors. On January 10, non-retail investors placed their bids, with an option to carry forward unallocated bids to the following day. Retail investors, meanwhile, were given the exclusive opportunity to place bids on January 13. The OFS is conducted through a separate window on the stock exchange, with trading hours set from 9:15 a.m. to 3:30 p.m.

The company mentioned, “The offer will take place over two trading days on a separate window of the stock exchanges between January 10, 2025 and January 13, 2025, from 9:15 am to 3:30 pm on both days. Only non-retail investors will be allowed to place their bids on T day, i.e., January 10, 2025. While placing their bids, non-retail investors may indicate their willingness to carry forward their unallotted bids to T+1 day for allocation to them, in the unsubscribed portion of retail category.”

The pricing of the OFS at ₹275 per share was a key factor behind the stock's decline, as it represented a significant markdown from the market value. Investors were quick to react, leading to a sharp drop in the stock's performance. Over the past year, Adani Wilmar's stock has declined by 18.69%, and over the last two years, it has fallen by 47%, reflecting broader challenges for the company. Adani Wilmar, a leading player in the FMCG sector, has faced significant volatility in its share price in recent months. 

In Conclusion

The two-day OFS by Adani Commodities LLP is a strategic move to enhance public shareholding in Adani Wilmar and meet regulatory norms. However, the steep discount offered in the sale has weighed heavily on the stock, causing a sharp decline in its value. Investors are now looking at how the market reacts to this development and the potential implications for the company's growth trajectory.