Adani Wilmar share price tumbled nearly 8% in early trade on Tuesday after Adani Enterprises said it would exit its joint venture with Singapore's Wilmar group. Adani Wilmar shares declined as much as 7.83% to ₹303.70 apiece on the BSE.
Adani Enterprises will raise over $2 billion that it will invest in core businesses such as energy and utilities.
Adani Enterprises said it will sell its entire 43.94% stake in Adani Wilmar Ltd. The flagship company of the Adani Group will sell 31.06% stake to its partner Wilmar International, and the balance to the public. The transaction will raise public shareholding in Adani Wilmar to 25%, the mandatory minimum.
The proceeds from the sale will be used by AEL to turbocharge its investments in the core infrastructure platforms in energy & utility, transport & logistics and other adjacencies in primary industry. AEL will continue to invest in infrastructure sectors which will further strengthen AEL's position as India's largest listed incubator of platforms playing the key macro themes underpinning India's growth story," Adani Enterprises said in a statement.
Adani Wilmar had a market capitalization of ₹42,824 crore ($5 billion) at market close on Monday, valuing Adani’s stake in the fast-moving consumer goods company at ₹18,817 crore ($2.2 billion). The company closed FY24 with revenue of nearly ₹50,000 crore.
Adani Wilmar was listed in February 2022 and public shareholders hold only 12.13% of the company at present.
Adani Wilmer share price fell more than 12% in three months and 17% this year. The Adani Group stock fell more than 50% in the last two years.
As of 9:50 AM, shares of Adani Wilmar were trading 7.75% lower at ₹303.95 on the BSE, while those of Adani Enterprises were trading 2.18% lower at ₹2,536.95 apiece.
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