Adani Enterprises demerger: Adani Wilmar share price jumps 5%. Is this a stock to buy today?

Adani Enterprises demerger: After the announcement of the demerger of the FMCG business from Adani Enterprises Limited (AEL), Adani Wilmar shares witnessed strong buying in the early morning session on Friday. Despite weak stock market sentiments, Adani Wilmar share price today opened at ₹344 apiece on the NSE and touched an intraday high of ₹371 per share mark, recording more than 5 percent intraday rise against its Thursday's close price of ₹348.35 apiece. On Thursday evening, Adani Enterprises announced it would demerge its FMCG business with Adani Wilmar Limited. Adani Enterprises Limited owns a 43.94 percent stake in Adani Wilmar. Post-AEL demerger, the shareholders of AEL will now directly own AWL shares. Adani Enterprises shareholders will receive 251 Adani Wilmar shares for every 500 shares of AEL or in that ratio.

Adani Enterprises-Adani Wilmar demerger

The board of directors of Adani Enterprises Limited, in its meeting on Thursday, considered and approved demerger of food and FMCG business into Adani Wilmar saying, "The Board, after considering recommendation of the Audit Committee and the Committee of Independent Directors, have considered and approved the following schemes of arrangement, subject to the satisfactory completion of all relevant documentation between the parties involved and other necessary regulatory and statutory approvals under the applicable laws, including approval of the jurisdictional bench of National Company Law Tribunal: A] Scheme of Arrangement amongst Adani Enterprises Limited (for this part, referred to as "Company" / "Demerged Company") and Adani Wilmar Limited ("Resulting Company") and their respective shareholders and creditors ("Proposed Scheme") pursuant to Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 ("Act")."

The Proposed Scheme among other things provided for the transfer and vesting of the Demerged Undertaking (as defined in the Proposed Scheme, which primarily includes the entire business of Demerged Company about the Food FMCG Business with all associated activities, assets, liabilities and Demerged Company's strategic investments in Adani Commodities LLP) from the Demerged Company to the Resulting Company on a going concern basis, and issue of equity shares by the Resulting Company to the equity shareholders of the Demerged Company, in consideration thereof.

"This demerger is in line with AEL's incubation strategy, which includes demerging the business once it is self-sustained and properly established. In the past, AEL has demerged businesses, including Adani Green Energy, Adani Energy Solutions (Adani Transmission earlier), etc., once they became self-sustaining," Adani Group said in a press statement.

Adani Wilmar share price target

Speaking on the outlook of Adani Wilmar shares, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, “Adani Wilmar share price is looking strong on the technical chart as it has given fresh breakout at ₹330 apiece level. However, the stock faces a strong hurdle at the ₹394 mark. On breaching this hurdle, Adani Wilmar's share price may touch ₹410 apiece soon. Adani Wilmar's share price target for medium-term investors would be ₹460 and ₹480 per share.”

On the suggestion to stock market investors regarding Adani Wilmar shares, Ganesh Dongre said, "Adani Wilmar shareholders can hold the scrip, maintaining stop loss at ₹330 apiece level for the short-term target of ₹380 and ₹410. On breaching above ₹410, the scrip may touch ₹460 and ₹480 mark in the medium term."

On the suggestion to fresh investors, the Anand Rathi expert said, “A fresh investor is advised to wait for either correction or a fresh breakout above ₹394. One should buy Adani Wilmar shares at the ₹350 apiece range, maintaining a stop loss at ₹330 for those mentioned above short to medium-term targets. If the bull trend continues and Adani Wilmar shares give a fresh breakout above ₹394, one can buy this stock above ₹410 for ₹460 and ₹480 per share targets, maintaining a stop loss at ₹380. Adani Wilmar shareholders can upgrade their trailing stop loss from ₹330 to ₹3820 once the stock breaches above ₹410 decisively.”

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