Adani Enterprises weighs exiting $6 billion Wilmar venture

Adani Enterprises Ltd. is exploring selling its stake in its Mumbai-listed consumer-staple joint venture with Wilmar International Ltd., freeing up capital for their core business, according to people familiar with the matter.

The conglomerate has been considering a potential sale of its 44% stake in Adani Wilmar Ltd. for a few months, the people said, asking not to be identified as the information is confidential. 

Adani’s shares are worth about $2.7 billion at the current share price, according to Bloomberg calculations.

Billionaire Gautam Adani and his family may retain a minority stake in a personal capacity following a sale, the people said. 

Wilmar, the Singapore-headquartered food conglomerate co-founded by billionaire Kuok Khoon Hong in 1991, could decide to retain its stake in the business, one of the people said.

Deliberations are at an early stage and Adani Enterprises may decide to keep its stake, the people said.

Adani Wilmar raised about 36 billion rupees ($435 million) in an initial public offering in Mumbai in 2022. Adani and Wilmar’s stakes together account for nearly 88% of the company’s shares.

The Securities and Exchange Board of India requires that large firms must have a minimum public shareholding of at least 25% within five years of the date of the listing.