NEW DELHI: Shares of Adani Wilmar fell sharply on Wednesday amidst a report that Adani group's flagship Adani Enterprises is exploring selling its stake in the consumer-staple joint venture with Singapore’s Wilmar International Ltd, freeing up capital for their core businesses.
The stock cracked almost 5 per cent on Wednesday to hit a low of Rs 374 on the BSE.
Adani Wilmar shares debuted on the exchanges in February 2022 at Rs ₹221 a piece and in the months to follow it became one of the best-performing newly listed stocks. The shares hit an all-time high of Rs 841 in September 2022 but since then have lost about 60 per cent of their value. Like all the Adani Group stocks, Adani Wilmar shares also faced a major blow after the Hindenburg Research report in January this year.
According to Bloomberg, Adani Group has been considering a potential sale of its 44% stake in Adani Wilmar for a few months, people aware of the development said. Adani’s shares are worth about $2.7 billion at the current share price.
Gautam Adani and his family could retain a minority stake in a personal capacity following the sale, the report added. Adani Enterprises might also decide to keep its stake as the deliberations are still at an early stage, said the report.
Last week, Adani Wilmar reported a loss of Rs 79 crore in the June quarter and its revenue also witnessed a decline. Nuvama Institutional Equities recently reduced the stock's price target to Rs 600 from Rs 625 earlier, noting that slippage in edible oil prices results in weak June quarter performance.