Gautam Adani's Adani Enterprises considers selling stake in Wilmar International: Report
1 min read 09 Aug 2023, 07:52 AM ISTAdani Enterprises is exploring selling its stake in Wilmar International Ltd, according to Bloomberg News
PremiumBillionaire Gautam Adani-led Adani Enterprises is exploring selling its stake in Wilmar International Ltd, Bloomberg News reported.
As per the report, Adani Enterprises has been considering a potential sale of its 44% stake in Adani Wilmar for a few months. Gautam Adani and his family may retain a minority stake in a personal capacity following a sale, Bloomberg reported citing people.
Adani Wilmar share price falls 5%
Adani Wilmar's share price fell almost 5 per cent while those of Adani Enterprises rose almost a per cent in early trade on BSE on Thursday.
Last week, Adani Wilmar reported a loss in the first quarter, hurt by a steep decline in edible oil prices. Shares of Adani Wilmar have fallen about 36% this year, valuing the company at around $6.2 billion.
Adani Group-linked stocks lost nearly $147 billion in market value earlier this year after U.S. short-seller Hindenburg Research raised questions about the group's corporate governance.
Adani Group called Hindenburg's report a "malicious attempt" at damaging its reputation.
Adani Wilmar is a so-called fast-moving consumer goods company, offering many essential kitchen commodities for Indian consumers including edible oils, wheat flour, rice, pulses and sugar, according to its website. Incorporated in 1999, the company’s products reach over 114 million households through more than 10,000 distributors, according to its annual report. It competes in India with the likes of ITC Ltd. and Hindustan Unilever Ltd.
Adani Wilmar reports 12% decline in revenue in Q1
Adani Wilmar reported a 12 per cent yearly decline in consolidated revenue during April-June 2023 quarter at ₹12,928 crore. The company said the decline in revenue during the quarter was reflective of a steep decline in edible oil prices. The food and FMCG segment recorded a strong revenue growth of 28 per cent year-to-year to record close to ₹1,100 crores of the total.
“Both urban and rural areas have witnessed strong demand," the Adani Group company said in a release. The company said it kept its focus on expanding the distribution of both oil and food products.
-With inputs from Reuters and Bloomberg
