NEW DELHI: In a significant move, the Adani Group announced its intention to fully exit its joint venture, Adani Wilmar, by selling its entire 44% stake to Wilmar International from Singapore and through the public market, with proceeds expected to exceed $2 billion. This decision, made public on December 30, 2024, is anticipated to enhance the group’s liquidity and reinforce its core infrastructure initiatives (India Times, India Times).

Adani Enterprises, the group’s flagship company, plans to divest a 31.06% stake to its joint venture partner, valued at approximately ₹12,314 crore (around $1.4 billion). This sale will elevate Wilmar’s ownership in Adani Wilmar to 75%, effectively marking a critical transition in the joint venture's structure. Following regulatory mandates for minimum public shareholding, the remaining 13% stake will be made available in the open market. The stock's closing price on the day before the announcement was assessed at ₹305 per share (Reuters).

The news led to a swift decline in Adani Wilmar’s stock, which fell by over 6% in early trading, reflecting investor reactions to the company's prospective changes. This transaction signifies the group's shift away from its staples business, where it has operated for the past 25 years, intensifying its focus on infrastructure sectors such as energy and utilities (Reuters).

As part of this transition, key personnel, including Pranav Adani and Malay Mahadevia, have resigned from the board of Adani Wilmar. The FMCG company, known for brands like Fortune cooking oil, reported significant revenue, showcasing a strong market presence with a fiscal year revenue of ₹51,555.24 crore.

Overall, this divestment is set to heighten Adani Group's financial flexibility as it aims to enhance its investment capabilities in critical infrastructure developments, following challenges in liquidity and recent legal inquiries surrounding its founder's conduct.