Shares of Adani Enterprises declined 5 per cent to hit an intraday low of Rs on BSE after Market regulator Securities and Exchange Board of India (SEBI) held Adani Wilmar IPO due to the pending investigation against the parent Adani Enterprises.
Though SEBI has not cited a reason behind the hold, media reports suggest that the IPO was put on hold due to an ongoing investigation into the group’s flagship company, Adani Enterprises. Gautam Adani-led Adani Enterprises holds 50 per cent stake in Adani Wilmar, which owns the popular edible oil brand ‘Fortune’.
The stock opened 0.9 per cent lower at Rs 1,414.00 against the previous close of Rs 1427.45. It has gained 500 per cent in the last one year and risen 195 per cent since the beginning of this year.
With a market capitalisation of Rs 1,55,326.18 crore, the share stands higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages.
According to MarketsMojo, the technical trend has deteriorated from Bullish on August 9, 2021, and the Stock is technically in a Mildly Bullish range. The stock is trading at a premium compared to its average historical valuations and with ROCE of 6.4, it has a Very Expensive valuation with a 5.6 Enterprise value to Capital Employed.
The SEBI website shows the Adani Wilmar IPO has been “kept in abeyance”. The proposed IPO offer worth Rs 4,500 crore will comprise a fresh issue of equity shares by the fast-moving consumer goods (FMCG) major and there will not be any secondary offering.
The flagship company of the Adani group reported an 8-time rise in consolidated net profit to Rs 271 crore for the April-June quarter.
The company’s standalone profit for the quarter stood at Rs 265.6 crore in Q1 FY22 vs a loss of Rs 65.67 crore in Q1 FY21. The total income grew 131 per cent to Rs 12,731 crore due to a rise in solar manufacturing, mining services business and IRM segment volumes, AEL said in a stock exchange filing.
The consolidated EBIDTA rose 215 per cent to Rs 948 crore due to an increase in revenue and better margins across all operating segments. “AEL has always been the incubation engine of the Adani Group and our creation of several new businesses continues to accelerate,” said Gautam Adani, chairman of the Adani group.
Adani Wilmer reported a net profit of Rs 654.56 crore for the financial year ended March 31, 2021, which was significantly higher than the previous fiscal’s Rs 394.60 crore.
The company is the market leader in the edible oil segment, and has 22 manufacturing units spread across 10 states and boasts of a distributor network comprising more than 5,500 entities.