MUMBAI: In a deal that frees up capital for the Adani group, the Ahmedabad-based conglomerate led by Gautam Adani is selling the staples business. Adani WilmarTo Wilmar International from Singapore for $2 billion. This inflow of funds is intended to cover the group’s liquidity needs for its core infrastructure business.
The group, through its flagship Adani Enterprises and its wholly owned subsidiary Adani Commodities, holds 44% in Adani Wilmar, which owns the Fortune sunflower oil and Kohinoor basmati rice brands.
Of the 44% the group owns, Wilmar will buy 31% at Rs 305 per share, increasing the Singaporean company’s 44% stake in Mumbai-listed Adani Wilmar to 75%. The price is a 7.2% discount to Monday’s closing price and values ​​the stake sold to Wilmar at $1.4 billion. Indian regulations stipulate that public shareholders must hold at least 25% of shares, limiting promoters’ shareholding to 75%.

The remaining 13% stake will be offered to the public through an offer for sale, with current public ownership standing at 12%. This marks the end of the group’s 25-year presence in the staple food sector. Following this, Pranav Adani, Gautam Adani’s nephew, and Malay Mahadevia, his childhood friend, resigned from the board of Adani Wilmar on Monday. The company will be renamed AWL, AWL Agri Business or Fortune Agri Business following the transaction.
The sale comes a month after U.S. authorities charged Gautam Adani with securities and wire fraud for his role in a $265 million bribery scheme related to Indian power contracts. The group has denied these allegations.
Proceeds from the sale of Adani Wilmar will support the growth of the group’s primary infrastructure activities. The group had previously sold its financial services business to the American company Bain Capital.