Asia Index Pvt Ltd on Friday said Adani Wilmar, AGS Transact Technologies and Vedant Fashions would be dropped from the S&P BSE IPO (initial public offering) index. The reconstitution would be effective February 20, 2023, S&P Dow Jones and BSE stated in a joint release. The release also mentioned that Alkosign, Safa Systems & Technologies, Quality RO Industries and Maruti Interior Products would be removed from the S&P BSE SME IPO.
Asia Index is a 50:50 partnership between S&P Dow Jones Indices LLC and India’s BSE.
A couple of days back, the Himachal Pradesh State Excise and Taxation Department raided an Adani Wilmar store in the state and checked for documents.
The company, in response, said that the state GST officials didn’t find any irregularities in the operations and dealings of the company. It further said that the company is not required to pay any liability in cash.
On the earnings front, Adani Wilmar reported a 16 per cent year-on-year (YoY) rise in consolidated net profit at Rs 246 crore for the December quarter compared with Rs 211 crore in the corresponding quarter last year.
Revenue for the quarter rose 7 per cent YoY to Rs 15,438 crore compared with Rs 14,371 crore in the same quarter last year. The Adani group company said volume for the quarter grew 16 per cent YoY, thanks to a large opportunity available in the packaged food industry.
The food & FMCG segment, which Adani Wilmar called the new growth engine, contributed 15 per cent of overall sales. The segment delivered volume growth of 27 per cent.
Adani Wilmar’s stock settled 0.95 per cent lower at Rs 436.10 today against a previous close of Rs 440.30. It has declined 24.86 per cent in the past one month.
Adani Wilmar is a 50:50 joint venture (JV) between Adani Group and Singapore-based food processing company Wilmar.
It must be noted that Adani Group stocks took a major hit recently after US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.
Moody’s Investors Service said today that it has changed the outlook on four Adani group issuers to ‘negative’ from ‘stable’ while maintaining the ‘stable’ outlook on the other four companies.
Meanwhile, Indian equity benchmarks slipped today, dragged by metals, consumer goods, energy and technology stocks.
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