Gautam Adani’s Adani Enterprises shares were on the up on Wednesday after the company was said to be considering selling its stake in Wilmar International Ltd, according to Bloomberg News.
What Happened? The company is mulling over the sale of its 44% share in Adani Wilmar. However, Gautam Adani and his family might keep a minor stake after the sale.
Adani Wilmar recently reported a first-quarter loss due to a significant drop in edible oil prices. Consequently, its shares dipped by 36% this year, placing the company’s worth at roughly $6.2 billion (₹51,344 crore).
Avoiding any damage: Earlier this year, Adani Group stocks took a substantial hit, losing almost $147 billion (₹12.17 lakh crore) in market value. This plunge came after U.S. short-seller Hindenburg Research raised concerns about the group’s corporate practices. In response, the Adani Group dismissed the report as a targeted attack on their reputation.
Adani Wilmar is a major player in the consumer goods sector, supplying essentials like edible oils, wheat flour, and rice to Indian homes. Since its inception in 1999, the company has expanded its reach to over 114 million households, distributed via more than 10,000 outlets. They face stiff competition from big names like ITC and Hindustan Unilever in the Indian market.
Price Action: Adani Enterprises shares were trading 0.55% higher at ₹2,489 shortly after markets opened for trading on Wednesday. On the contrary, Adani Wilmar shares were down 2.99% at ₹381.20 at the time of publishing.
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