Adani Enterprises to transfer ownership of Adani Wilmar to shareholders

Adani Enterprises Ltd. has announced that it will demerge its Food FMCG business with all associated activities, assets, liabilities and strategic investments in Adani Commodities LLP to Adani Wilmar.

Adani Commodities LLP is one of the promoter entities of Adani Wilmar that has a 43.94% stake at the end of the June quarter.

Post this demerger, shareholders of Adani Enterprises will receive shares of Adani Wilmar. As a result, shareholders of Adani Enterprises will now own shares of Adani Wilmar and the latter will no longer be a JV of Adani Enterprises.

Shareholders of Adani Enterprises will receive 251 shares of Adani Wilmar for every 500 shares they own as on the record date, which is yet to be determined.

Adani Wilmar is a Joint Venture company between the Adani Group and the Wilmar Group, Asia's leading agribusiness groups since 1999.

The Food FMCG business and other businesses of Adani Enterprises are capable of attracting a different set of investors, strategic partners, lenders and other stakeholders, Adani Enterprises said in a statement. "In order to lend greater focus to the operation of the said (Food FMCG) business, it is proposed to reorganise and segregate the Food FMCG business by way of demerger and transfer the same to the resulting company (Adani Wilmar)," the statement further said.

Adani Enterprises further said that the proposed demerger will unlock the direct value of Adani Enterprises' shareholders and also provides scope for independent collaboration and expansion.

Post this transaction, the promoter stake in Adani Wilmar will fall to 76.76% from 87.87% currently, while public shareholding will increase to 23.24% from 12.13%.

For the June quarter, Adani Enterprises reported a net profit of ₹1,455 crore from ₹674 crore during the same period last year. Revenue increased by 13% to ₹25,472 crore from ₹22,644 crore last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 47% to ₹3,705 crore, while margin expanded by over 300 basis points to 14.6% from 11.1% in the year-ago quarter.

Adani Enterprises shares ended 1.8% higher at ₹3,225.1. The stock is up 11% so far in 2024.