Adani Wilmar Stake Said To Be On Chopping Block As Group Looks Shore Up Cash

Adani Group is reportedly in discussions with various multinational consumer goods firms to divest its entire 43.97% share in Adani Wilmar, the owner of the Fortune brand of edible oils and packaged groceries.

What Happened: Executives familiar with the situation told the Economic Times that a deal is anticipated within the next month. The conglomerate, which operates in sectors ranging from ports to renewable energy, anticipates fetching ₹20,998 crore-₹25,198 crore for its stake in this joint venture with Singapore-based Wilmar International, which also holds a 43.97% interest in the company.

The Adani Group aims to divest from certain businesses to allocate more substantial resources to its primary focus areas, such as infrastructure, according to an executive. He indicated to the business daily that the intention to sell its share in Adani Wilmar aligns with this strategy. He also suggested that the proceeds from the potential sale would likely be invested in other group enterprises rather than used to reduce debt.

Adani Wilmar is a key player in the edible oil sector. In the previous fiscal year, the company reported a net profit of ₹607 crore on revenue of ₹55,262 crore.

Promoters within the group have been contemplating the sale of shares in non-core assets as a means to create a liquidity buffer. This follows the Hindenburg short-seller report on the group earlier in the year, which led to the abrupt withdrawal of a proposed share sale in the flagship Adani Enterprises and resulted in a huge reduction in wealth for investors of the group. However, the group’s companies have largely recovered most of the losses in their stock prices since then.

Price Action: Adani Wilmar’s share price was trading almost flat at ₹317.35 in morning trade on Monday.