Wed. Sep 28th, 2022
Other Adani-related stocks have also performed strongly. Adani Power Ltd. has outperformed the S&P BSE 500 index by more than 200 percent this year. Adani Green Energy Ltd. is the fifth highest performance, up 65 percent year to date, despite the fact that the company has no analyst coverage.

NEW DELHI, INDIA: Adani Wilmar Ltd. of India is an outlier among Asia’s freshly listed firms. The food firm has nearly quadrupled in value since its inception, whereas most entrants are trading at a loss.
Shares in the business, a joint venture between Gautam Adani’s group and Singapore’s Wilmar International Ltd., have surpassed 121 Asian initial public offerings totaling more than $100 million this year. Almost two-thirds of the region’s new listings are in the red, owing to rising interest rates and the conflict in Ukraine.

The Singapore Monetary Authority and Nippon Life India were among the investors in Adani Wilmar’s first public offering, which produces Fortune brand cooking oils, wheat flour, rice, pulses, sugar, and other food goods. The company stated that a portion of the $486 million sale will be used to expand facilities, repay loans, and make strategic acquisitions.

According to Vikrant Kashyap, an analyst at KR Choksey, the business would “continue to gain market share due to a robust distribution network, varied product portfolio, market leadership in key categories, concentration on rural market, new product launches, and solid parentage.”

The good result bodes well for Adani, one of Asia’s busiest dealmakers who is broadening his portfolio after years of focused on coal and infrastructure-related investments. The tycoon’s decision to diversify into new fields like as data centres and digital services has paid off, capping a year of 32 acquisitions.

Kashyap noted in a note this month that rated the stock as accumulate that the JV, which paid off debt with money from the IPO, receives “substantial benefit” from its parents. He noted that expected acquisitions will result in a rise in market share. The company recently announced the acquisition of many brands, including the Kohinoor culinary brand for India.

Other Adani-related stocks have also performed strongly. Adani Power Ltd. has outperformed the S&P BSE 500 index by more than 200 percent this year. Adani Green Energy Ltd. is the fifth highest performance, up 65 percent year to date, despite the fact that the company has no analyst coverage.

By adele rose

Adele Rose is the senior editor and employee of WGBS Pvt Ltd Digital wing.

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