Adani Enterprises Mulls Selling Stake Worth $2.7 Billion In Joint Venture With Wilmar: Report

Adani Enterprises is reportedly considering selling its stake in its consumer-staple joint venture with Wilmar International Ltd.

This move would allow Adani to free up capital for their core business operations.

The potential sale of Adani's 44 per cent stake in Adani Wilmar has been under consideration for several months, Bloomberg reported citing people familiar with the matter.

According to Bloomberg calculations, Adani's shares in the joint venture are valued at around $2.7 billion at the current share price.

If a sale were to take place, Adani group chairman Gautam Adani and his family may still retain a minority stake in a personal capacity, the report said.

It is also possible that Wilmar, the Singapore-headquartered food conglomerate co-founded by billionaire Kuok Khoon Hong, may choose to maintain its stake in the business, it added.

It should be noted that discussions regarding the potential sale are still in the early stages, and Adani Enterprises may ultimately decide to keep its stake, the Bloomberg reported.

Together, Adani and Wilmar hold nearly 88 per cent of the company's shares.

In accordance with the Securities and Exchange Board of India's regulations, large firms must have a minimum public shareholding of at least 25 per cent within five years of their listing.

Adani Wilmar is a fast moving consumer goods company that offers a wide range of essential kitchen commodities for Indian consumers.

The company's products include edible oils, wheat flour, rice, pulses, and sugar.

With over 10,000 distributors, Adani Wilmar's products reach more than 114 million households across India. In the Indian market, it competes with companies like ITC and Hindustan Unilever.

During the quarter ending 30 June, Adani Wilmar reported a net loss of 790 million rupees. The company's management attributed this loss to the decline in edible oil prices and high-cost inventory.