Adani Enterprises Approves Demerger of Food and FMCG Divisions
Adani Enterprises Limited (AEL), the flagship firm of the Adani Group, has announced that its board has sanctioned the demerger of its food and fast-moving consumer goods (FMCG) divisions. These sectors will now merge into Adani Wilmar, a joint venture established between the Adani Group and Singapore-based Wilmar Group.
The demerger will result in a decrease in the promoter's stake in Adani Wilmar, aligning with Securities and Exchange Board of India (Sebi) regulations. Presently, AEL holds a 43.94% stake in Adani Wilmar through Adani Commodities, which will be transferred to current public shareholders of Adani Wilmar. Under the arrangement, AEL shareholders will receive 251 shares of Adani Wilmar for every 500 shares they hold. The record date for this transaction is yet to be disclosed.
This move is part of AEL's strategy to incubate and subsequently demerge businesses once they become self-sufficient and well-established. AEL has previously demerged businesses such as Adani Green Energy and Adani Energy Solutions (formerly Adani Transmission).
Post-demerger, the promoter's stake in Adani Wilmar will drop from 87.87% to 76.76%, while public shareholding will increase from 12.13% to 23.24%. Sebi guidelines require large companies to have at least 25% of their shares available to the public within three years of listing. Adani Wilmar, listed in February 2022, has until February next year to meet this requirement.
Additionally, Adani Wilmar will no longer be a joint venture of the Adani Group following the demerger. The food and FMCG sectors of Adani Enterprises are anticipated to attract a different group of investors, strategic partners, lenders, and other stakeholders. The demerger aims to enhance the focus on the operation of the food and FMCG businesses and restructure these divisions into Adani Wilmar.
Adani Enterprises emphasized that the demerger would unlock direct value for its shareholders and create opportunities for independent growth and collaboration.