Adani Enterprises Ltd (AEL), the leading company of the Adani Group, which spans sectors from energy to airports, announced on Thursday that its board has approved the demerger of its food and fast-moving consumer goods (FMCG) businesses. These segments will be integrated into Adani Wilmar. This decision aligns with the Securities and Exchange Board of India (Sebi) guidelines and will result in a reduction of the promoter stake in Adani Wilmar, as noted by sector analysts.
AEL, which currently holds a 43.94% stake in Adani Wilmar through its promoter entity Adani Commodities, plans to transfer this stake to the existing public shareholders of Adani Wilmar. According to the arrangement, AEL shareholders will receive 251 shares of Adani Wilmar for every 500 shares they hold. The specific record date for this transaction has not yet been announced.
“This demerger is part of AEL’s strategy to incubate and develop businesses until they are self-sustaining and well-established, at which point they are demerged. AEL has previously demerged businesses like Adani Green Energy and Adani Energy Solutions (formerly Adani Transmission) once they reached this stage,” a group source stated.
No cash payments will be involved in this demerger scheme.
After the transaction, the promoter stake in Adani Wilmar will decrease from 87.87% to 76.76%, while the public shareholding will increase from 12.13% to 23.24%, according to industry experts. Sebi regulations mandate that large companies must ensure that at least 25% of their shares are held by the public within three years of being listed.
Adani Wilmar, listed in February 2022, was formed as a joint venture between the Adani Group and Singapore-based Wilmar Group in 1999. Following this transaction, Adani Wilmar will no longer be a joint venture of the Adani Group.
Adani Enterprises emphasized that the food and FMCG sectors, along with its other businesses, have the potential to attract different investors, strategic partners, lenders, and other stakeholders. "To better focus on the operation of the food and FMCG businesses, it has been proposed to reorganize and segregate these sectors through demerger and transfer them to Adani Wilmar," the statement explained.
The company further mentioned that the demerger is expected to unlock direct value for Adani Enterprises’ shareholders and facilitate independent growth and partnerships.
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