Adani Wilmar Shares Soar 5% After Demerger News: Is It the Right Time to Buy?

Adani Enterprises Demerger:

After Adani Enterprises announced it would separate its FMCG business into Adani Wilmar, the shares of Adani Wilmar saw a strong rise on Friday morning. Despite the overall weak market, Adani Wilmar’s share price opened at ₹344 on the NSE and reached an intraday high of ₹371, showing over a 5% increase from its Thursday close of ₹348.35. Adani Enterprises owns 43.94% of Adani Wilmar, and after the demerger, Adani Enterprises shareholders will receive 251 Adani Wilmar shares for every 500 Adani Enterprises shares they own.

Demerger Details:

The Adani Enterprises board approved the demerger in a meeting on Thursday. The demerger will involve transferring the food and FMCG business from Adani Enterprises to Adani Wilmar. Shareholders of Adani Enterprises will get equity shares in Adani Wilmar in return. This move is part of Adani Enterprises’ strategy to spin off businesses once they are self-sustaining, as they have done previously with Adani Green Energy and Adani Energy Solutions.

Adani Wilmar Share Price Outlook:

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said Adani Wilmar’s share price looks strong after breaking out at ₹330. However, it faces resistance at ₹394. If it breaks this level, it could reach ₹410 soon. For medium-term investors, the targets are ₹460 and ₹480 per share.

Advice for Investors:

Dongre suggests that current Adani Wilmar shareholders hold their shares with a stop loss at ₹330, aiming for short-term targets of ₹380 and ₹410. If the price breaks above ₹410, the targets become ₹460 and ₹480. For new investors, he advises waiting for a price correction or a breakout above ₹394. If buying around ₹350, maintain a stop loss at ₹330. If the price breaks above ₹410, buy with targets of ₹460 and ₹480, and set a stop loss at ₹380. Once the stock goes above ₹410, shareholders should move their stop loss to ₹382.