Adani Group in talks to sell 44% stake in Wilmar
Adani Group is discussing selling its entire 43.97% stake in Adani Wilmar. This joint venture with Singapore-based Wilmar International is worth $2.5-3 billion (roughly Rs. 20,800-25,000 crore), reported The Economic Times. The sale aligns with Adani Group's plan to focus on core areas like infrastructure. This decision comes after short-seller Hindenburg's report earlier this year caused a sudden withdrawal of a proposed share sale in Adani Enterprises, leading to major wealth erosion for investors.
Declining financial performance of Adani Wilmar
This comes at a time when the Gautam Adani-led company reported losses for two consecutive quarters. In the last week, it posted a net loss of Rs. 130.73 crore for the July-September quarter. Total income dropped from Rs. 14,209.20 crore to Rs. 12,331.20 crore during the same period. In terms of sales volume, the company experienced an 11% growth to 14.6 lakh tonnes.
Profitability affected by losses in edible oil segment
Adani Wilmar's profitability was negatively affected by losses in the edible oil segment, although this was partially balanced by improved margins in the Food & FMCG and industry essential segments. The losses in edible oil were mainly due to divergent trends in spot and future prices, resulting in hedging losses.
The company is shifting its focus toward infrastructure investments
"Adani Group will exit a few businesses to invest more deeply in core focus areas such as infrastructure," one executive told The Economic Times. "Plans to disinvest its stake in Adani Wilmar are on these lines," the executive said, adding that proceeds from the proposed sale will not used to settle debt but for investments in other group businesses. At the time of writing, Adani Wilmar's shares were trading 0.06% down at Rs 317.20 apiece on NSE.
