Adani Group stock jumps 6% after signing ₹603 Cr deal to acquire 100% stake in G.D. Foods

During Wednesday’s trading session, the shares of one of the largest consumer Food FMCG companies in India known for its ‘Fortune’ brand surged nearly 6.6 percent on NSE, after signing a deal to acquire GD Foods, a leading player in the Sauces and Pickles category and owner of renowned brand “Tops”.

Price Movement

With a market cap of Rs. 33,128.8 crores, at 11:46 a.m., the shares of Adani Wilmar Limited were trading in the green at Rs. 254.9, up by around 6.3 percent, compared to its previous closing price of Rs. 239.8. The stock has delivered negative returns of nearly 30 percent over a one-year period, as well as around 6 percent returns in the last one month.

What’s the News

In its latest exchange filings, Adani Wilmar Limited (AWL) announced the signing of a definitive agreement to acquire G.D. Foods Manufacturing (India) Private Limited, a prominent player in the sauces and pickles sector, and the owner of the renowned ‘Tops’ brand.

The acquisition will be executed in multiple tranches, with 80 percent of the shares to be acquired in the first tranche, and the remaining 20 percent to be acquired over the next three years. The agreed enterprise value is Rs. 603 crores, on a debt-free and cash-free basis.

This acquisition aligns with AWL’s vision to meet the diverse kitchen needs of Indian households, enhancing its portfolio with a wide range of value-added food products.

The deal is contingent upon customary closing conditions, and the first tranche is expected to be completed within 60 days. The transaction will be financed using internal accruals or proceeds from the IPO.

Also read: PSU Railway stock jumps 3% after receiving ₹729 Cr order from HPSEBL

About the Target Entity

Founded in 1984, GD Foods, the owner of the “Tops” brand, offers a variety of high-quality products, including tomato ketchup, snack sauces, specialty sauces, jams, pickles, noodles, and cooking essentials such as vinegar, baking powder, cake mixes, and more. In FY24, GD Foods reported a revenue of Rs. 386 crores, achieving a 3-year CAGR of 15 percent, and recorded an EBITDA of Rs. 32 crores.

Financials

Adani Wilmar experienced a significant growth in its revenue from operations, showing a year-on-year increase of around 31.4 percent from Rs. 12,828 crores in Q3 FY24 to Rs. 16,859 crores in Q3 FY25. Similarly, its net profit increased during the same period from Rs. 201 crores to Rs. 411 crores, indicating an impressive rise of nearly 104.5 percent YoY.

About the company

Adani Wilmar Limited (AWL), a joint venture between Adani Group of India and Wilmar Group of Singapore, is present in the Fast-moving consumer goods (FMCG) business comprising primarily of edible oil and food & FMCG Segment. Its flagship brand “Fortune” is a household brand reaching over 121 million households.

The company is also engaged in industry essential commodities such as castor derivatives, oleo derivatives, de-oils cake etc. AWL has 24 plants in India located across 10 states, comprising 10 crushing units, 19 refineries and food capacities, while its refinery in Mundra is the largest single-location refinery in India with a designed capacity of 5,000 Ton Per Day.

Written by Shivani Singh

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