The flagship company of Gautam Adani contemplates withdrawing from a $6 billion consumer venture.

DNHN - According to sources, Adani Enterprises is contemplating selling its stake in the Mumbai-listed consumer staples joint venture with Wilmar International to free up capital for its core business.

According to sources, the company has been contemplating the sale of its 44% stake in Adani Wilmar for several months.

Bloomberg estimates that Adani's shares are worth approximately $2.6 billion based on current market prices.

According to sources, Indian billionaire Gautam Adani and his family may retain the minority stake after the sale as individuals.

A source indicated that Wilmar, the Singapore-based food conglomerate co-founded by billionaire Kuok Khoon Hong in 1991, may decide to retain its stake in the business.

According to a source, discussions are in their infancy, and Adani Enterprises may decide to retain its stake.

This year, shares of Adani Wilmar have decreased by about 38%, resulting in a market capitalization of about $6 billion.

The market value of companies affiliated with Adani decreased by more than $150 billion after US-based short-seller Hindenburg Research filed fraud allegations against the business empire. Adani Corporation refutes all allegations of wrongdoing.

Adani resumed trading once the stock price stabilized. Ambuja Cements announced on August 3 that it will acquire Sanghi Industries for $605 million.

Last month, Bain Capital reached an agreement to acquire 90% of the family's shares in Adani Capital and Adani Housing.

In 2022, Adani Wilmar raised approximately 36 billion rupees ($435 million) through an initial public offering in Mumbai.

Together, Adani and Wilmar account for nearly 88% of the company's shares. Within five years of the date of listing, the Securities and Exchange Commission of India requires large companies to have a minimum public shareholding of at least 25%.

According to the company's website, Adani Wilmar is an FMCG company that supplies many essential kitchen items to Indian consumers, including cooking oil, flour, rice, beans, and sugar.

According to its annual report, the company's products reach more than 114 million households through more than 10,000 distributors. In India, the company competes with ITC and Hindustan Unilever.

For the quarter ending June 30, the company reported a net loss of 790 million rupees ($9.5 million). The loss was attributed by management to falling cooking oil prices and costly inventories.

PV t/h