Adani Enterprise is looking to sell its stake from its consumer-staple joint venture with Wilmar International, reported Bloomberg. As per the report, Adani group is aiming to free up capital for their core business.
The conglomerate has been looking to sell 44% of its stake which is worth about $2.7 billion at the current share price. The report also mentions that, Gautam Adani and his family may retain a minority stake in a personal capacity following a sale. Adani and Wilmar's stakes together account for nearly 88% of the company's shares.
The FMCG company that offers a range of essential kitchen items including edible oil, wheat flour, rice, pulses and sugar, was incorporated as a joint venture in January 1999 between the Adani Group and the Wilmar Group. As of now, the company has 23 plants across 10 states in India. Edible oil brand Fortune is their flagship brand.
Also Read: Adani to raise $3.5 bn from share sale in three group cos
The company reported a net loss of Rs 790 million in the quarter ending June 30. Management attributed the loss to falling edible oil prices and high-cost inventory.
Adani Group-linked stocks lost nearly $147 billion in market value earlier this year following the scathing report by Hindenburg Research that accused the company of stock manipulation and financial misdeeds.