During the day, the stock surged as much as 18.7 percent to hit a fresh high of Rs314.85 a share on BSE. At 10.22am, the scrip was trading at Rs 314, up 18.4% from its previous close Shares of newly listed Adani group firm Adani Wilmar Ltd extended gains for the second session surging over 19 percent on Wednesday on the back of higher volumes. The stock spiked nearly 38 percent in the last two sessions.
Analysts say that the stock is available at reasonable valuation as compared to its peers. Adani Wilmar price earnings stands at 37.56x, whereas its peers like Nestle and Britannia Industries are trading at PE of 81.6x and 54.7x. Though its initial public offering got mutedmresponse due to weak local equity marketsmand after many recent IPOs failed to delivermpositive returns on the listing day, the stockmadvanced nearly 37.8 percent from its issueprice. It was listed on Tuesday.
This was the seventh listing of Adani Groupmfirms and now the total market cap of allmfirms stood at around Rs 11.30 trillion. Adani Wilmar Ltd, the equal joint venture between Adani Enterprises Ltd and Wilmar International Ltd, and the owner of the Fortune brand of edible oils, has set its issue price at Rs 230 a share. The company raised around Rs 3,600 crore from its public issue. The proceeds from the issue worth Rs 1,900 crore will be used for capital expenditure, Rs 1,058.90 crore for repayment of debt and Rs 450 crore will be used for funding strategic acquisition and investment.
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