Adani Wilmar OFS: FTSE weightage up, $24 million inflow expected

Adani Wilmar is set to see a rise in its float weight in the FTSE indices on Wednesday following its recent Offer for Sale (OFS), a move expected to attract passive inflows of about $24 million, according to brokerage firm Nuvama. This adjustment, triggered by an increased free float, could impact trading volumes significantly.

Adani Wilmar shares climbed as much as 1.1% on Wednesday to Rs 269.85 on the BSE. The company will see a significant increase in its weightage within FTSE indices as part of an ad hoc adjustment scheduled for January 15. This revision follows the completion of the company’s large-scale OFS, which increased its free float.

According to a report from Nuvama Alternative & Quantitative Research, the weightage hike is projected to drive passive inflows of $24 million, equivalent to about 7.8 million shares or 1.7 days of average trading volume. The brokerage said it expects this adjustment to boost trading activity, although such events tend to influence liquidity more than immediate price changes.


The OFS, which concluded earlier this week, saw Adani Commodities LLP, the promoter of Adani Wilmar, offloading up to 19.50 crore shares, representing 15.01% of the company’s equity, including an oversubscription option. While the stake sale aimed to enhance liquidity and broaden institutional participation, the discounted floor price of Rs 275 initially pressured the stock, leading to an over 8% decline on Monday.

Adani Wilmar’s stock has struggled over the past year, declining over 27%, despite its strong position as a key FMCG player in India, offering a range of essential kitchen products. The company is a joint venture between the Adani Group and Singapore-based Wilmar International.

With the FTSE weightage adjustment taking effect, market observers see a potential for greater passive investment in Adani Wilmar, which could help stabilize the stock. The development comes as a positive signal following the volatility surrounding the OFS.

Adani Wilmar consensus target price and recommendation:

Analysts remain neutral, with an average target price of Rs 381 for Adani Wilmar’s stock. Out of 5 analysts, 2 recommend a buy, 2 recommend a hold, and 1 suggests a sell, according to Trendlyne data.

Adani Wilmar shares technical indicators:

Technically, the stock's relative strength index (RSI) stands at 31.3. According to Trendlyne, an RSI below 30 is considered oversold, while above 70 indicates overbought conditions. Additionally, the MACD is at -0.8, which is below its signal and center line, giving a strong bearish indicator.

The stock is trading below its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

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