Bengaluru, Feb 8 (BNA): Shares of India’s leading edible oil maker Adani Wilmar Ltd surged 13.5% in its first market debut on Tuesday, valuing the company at 339.28 billion rupees ($4.54 billion).
The listing on the national exchange comes amid volatility in broader stocks as central banks around the world tackle rising inflation and expectations of higher interest rates are driving foreign investors out of local markets, Reuters reported.
The company’s shares opened at 227 rupees, discounting 1.3% from the initial public offering price of 230 rupees, before rising to 261 rupees. By 0659 GMT, the stock was trading up 10.7% to Rs 254.8.
The size of the IPO was reduced to 36 billion rupees and in late January the offering was oversubscribed 17.37 times.
Adani Wilmar is a joint venture between the Adani Group, headed by billionaire Gautam Adani, and the Singaporean agricultural company Wilmar International Ltd.
The company offers products across three categories – edible oil, packaged foods, and industry basics such as wheat flour, rice and pulses. It is best known for its “Fortune” brand of cooking oil.
Adani Wilmar shares were listed at a discount “due to weak secondary market sentiment in the past few trading sessions,” said Lekhita Chiba, senior research analyst at Capital Via Global Research Ltd.
“Given (the company’s) broad distribution, sound financials, strong brand recall, and increased reach and home consumption, the company’s long-term prospects appear optimistic.”
The company, which has 22 plants in 10 states in the country, will use the proceeds of the IPO to primarily fund capital spending requirements and pay off debt.
JP Morgan India, BofA Securities India, ICICI Securities and HDFC Bank are among the main contenders for the IPO.