In order to abide by shareholding regulations, Adani Enterprises and Wilmar International are set to start the minority stake sale in their joint venture next month. As per the report by Bloomberg, the companies plan to sell a roughly 13 per cent stake in Adani Wilmar, which is valued at USD 735 million based on the current stock prices.
The media reports state that both these companies are aiming to comply with the Indian security laws which require at least 25 per cent of the shareholding to be with the non-founders within three years of listing.
At present, the flagship of Adani’s conglomerate and Wilmar have equal shareholding of 44 per cent each, taking the total to 88 per cent. This 88 per cent needs to be reduced to 75 per cent by February as the three-year grace period is set to end by then.
As per the reports, the stake sale could take place in one or two tranches before the end of the grace period. The advisers are expected to meet in the United States, Southeast Asia as well as India soon. However, the deliberations are in place and the companies have yet to make a final decision.
The stake sale has been termed as a barometer of investor appetite for the company which has again turned profitable recently. Adani Wilmar, which was established in 1999, has 23 plants across India. The company deals in the sales of kitchen staples which include edible oil, wheat flour and pulses among other items. As far as the stocks are concerned, they have advanced 2.6 per cent this year.
