Adani Enterprises cancels Adani Wilmar share split until it complies with public float rules

MUMBAI: The Adani Enterprises board on Tuesday reversed its earlier decision to divest stake in the group’s fast-moving consumer goods (FMCG) unit Adani Wilmar (AWL) and transfer the stake to shareholders.

The company said Adani Wilmar, which owns 87.9% promoter stake, first needs to meet its minimum public shareholding (MPS) requirement. India’s market regulator, the Securities and Exchange Board of India (Sebi), requires all listed companies to have a public shareholding ratio of no less than 25%.

“In order to provide clear direction to shareholders during the implementation of AWL’s MPS strategy in accordance with relevant SEBI circulars, the draft plan is hereby withdrawn,” the company told the exchanges in a filing on Tuesday evening.

Adani Enterprises holds a 43.94% stake in Adani Wilmar through holding company Adani Commodities LLP. Singapore’s Wilmar International holds 43.94% of the company’s shares through Lence Pte Ltd.

August announcement

Adani Enterprises announced in August that it would divest its stake in Adani Wilmar, ending its joint venture with Wilmar International. For every 500 Adani Enterprises shares held, shareholders will receive 251 Adani Wilmar shares.

Adani Wilmar sells cooking oil and other products under the Fortune brand.

Adani Wilmar shares rose 3.33% on Tuesday to close at $335.3. Adani Enterprises rose 1.46% to close at $2,841.45. The Sensex rose 0.45%. The announcement was made during trading hours.

The Adani Enterprises board on Tuesday also approved the company to raise funds $Raise Rs 2,000 crore through issuance of non-convertible debentures (NCDs).

Adani Enterprises’ profits surged more than six-fold in the July-September quarter from the same period last year, helped by higher contributions from its upcoming businesses.

Adani Group flagship company reports consolidated profit of $1747 Crores Rs. $228 crore in the same period last year. Comprehensive revenue increased by 15% year-on-year $23,196 Crores.

Earnings before interest, taxes, depreciation and amortization (Ebitda) $43.54 billion in this quarter, an increase of 46% over the same period last year.

record profits

The company’s first-half profit hit a record high $8,654 Crores. In the first half of the year, the company’s emerging business Ebitda increased by 85% year-on-year, accounting for 60% of consolidated Ebitda.

“Adani Enterprises Limited (AEL) continues to focus on investing in logistics, energy transition and adjacent industries that are at the core of the country’s economic growth. Adani New Industries Limited (ANIL) and Adani Airport Holdings Limited (AAHL) are building on their capacity growth and Rapid growth in asset utilization led to this record-breaking half-year performance,” said Gautam Adani, Chairman, Adani Group.

The incubator company for Adani Group New Businesses has four upcoming businesses including Adani New Industries Limited and its green hydrogen ecosystem, data centres, airports and roads.

“Our focus on executing greenfield projects at ANIL’s three giga-scale integrated manufacturing facilities and the accelerated development of Navi Mumbai International Airport have driven these strong results,” Adani said. “In addition, AEL is poised to expand its footprint in data centres, This turbo-charged growth is repeated across the road, metals and materials and specialty manufacturing sectors. AEL continues to invest in innovative technologies across its platforms to support this phase of high growth.”

While the new business contributed significantly to consolidated Ebitda, its contribution to profit was relatively low $621 Pre-tax profits of new enterprises vs. $Rs 909 crore came from established players. The latter includes mining services, mining, coal trading and other metals and industrial trading.

in red

In fact, the airport business continued to lose money, with a pre-tax loss of $148 Crores. Adani has airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram.

ANIL reports pre-tax profit up 74% year-on-year $916 Crores.

Adani Enterprises raises capital in fiscal second quarter $4,200 crore through eligible institutional placement and $Raise Rs 800 crore through public issue of NCDs. The latter are rare public NCDs issued by corporate entities.

The company’s total debt is $63,855 crore as on September 30. in, $The debt owed to the promoters of the company is Rs 16,647 crore and the rest is external debt. This implies a net debt to Ebitda ratio of 2.5, compared with 2.3 as of March 31.