Adani Wilmar shares slumped 7.2% in early trading on Tuesday, hitting an intraday low of ₹305.65 on the BSE, as Adani Enterprises (AEL) prepared to depart its 25-year joint venture with Wilmar International in a $2 billion transaction. AEL wants to use the profits to expand its main infrastructure platforms, such as energy, utilities, transportation, and logistics.
At around 12.09 PM, Adani Wilmar was trading 6.83% lower at ₹306.30, against the previous close of ₹328.75 on NSE.
AEL intends to sell its almost 44% shareholding in Adani Wilmar Ltd. (AWL) in two parts. To meet public shareholding standards, it will initially sell around 13% of its shares. The promoters currently own 88% of the company. Wilmar will acquire the remaining 31% interest, increasing its holding to nearly 75% from 44%.
According to a filing with the bourses, the Indian company will sell its 31% holding to Wilmar for a maximum of ₹305 per share. According to persons familiar with the situation, AEL plans to sell its 13% interest in the markets for about the same price.
As part of this transition, AEL’s nominee directors, Pranav V Adani and Malay Mahadevia, have resigned from the AWL board. In addition, the firm will be renamed AWL Ltd, AWL Agri Business Ltd, Fortune Agri Business Ltd, or another name approved by the Ministry of Corporate Affairs.
This comes just over a month after Gautam Adani and others were indicted in the United States on bribery and fraud conspiracy charges.
This acquisition will allow AEL to focus on accelerating growth in its core infrastructure platforms, according to an official release.
For feedback and suggestions, write to us at editorial@iifl.com
Related Tags
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Securities Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.