Adani Enterprises Cancels Demerger Plan of Food FMCG Business to Adani Wilmar

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Adani Enterprises Cancels Demerger Plan of Food FMCG Business to Adani Wilmar

Adani Enterprises made the decision to withdraw its plan for the demerger of its food FMCG business to Adani Wilmar, an arrangement that would have let the Adani group promoters take control of Adani Wilmar. The company's board opted for this move to adhere to the minimum public shareholding (MPS) requirement, which was necessary for compliance with relevant SEBI Circulars.

The original demerger scheme, announced on August 1, 2024, highlighted the independence and self-sustainability achieved by the food FMCG business. Adani Enterprises, holding nearly 44% stake in Adani Wilmar through Adani Commodities, aimed to integrate this business directly under the Adani group promoters by ending its status as a joint venture of Adani Enterprises. However, challenges regarding valuation and pricing obstacles impeded the progress of a potential stake sale that was contemplated in the past.

The Adani group promoters, including the Adani group and Lence Pte, currently hold an 87.87 percent stake in Adani Wilmar, surpassing the stipulated limit that requires them to reduce their stake to 75 percent by 2025. Apart from withdrawing the demerger plan, Adani Enterprises' board has approved a public issuance of Non-Convertible Debentures amounting to Rs 2,000 crore. This decision was made following a significant 664% year-on-year increase in the company's consolidated net profit for the September quarter, with operational revenue reaching Rs 22,608 crore and EBITDA rising by 47%. The company's Chairman, Gautam Adani, emphasised their focus on investments in logistics, energy transition, and other sectors essential for the country's economic growth, pointing to the strong performance of Adani New Industries Ltd (ANIL) and Adani Airport Holdings Ltd (AAHL) as drivers of the impressive half-year results.