Adani Wilmar Ltd, a newly listed Adani group subsidiary, surged over 19% on Wednesday on increased volumes, extending gains for the second day. In the previous two sessions, the stock has risen approximately 38%.

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On the BSE, the stock rose as much as 18.7% during the day, reaching a new high of Rs 314.85 a share. It was trading at Rs 314 at 10:22 am, up 18.4% from its previous close.

According to analysts, the stock is accessible at a good price when compared to its rivals. Adani Wilmar’s price-earnings ratio is 37.56, while its counterparts Nestle and Britannia Industries have PE ratios of 81.6 and 54.7, respectively.

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Despite the fact that its initial public offering received a subdued reaction due to sluggish local equity markets and many recent IPOs failing to provide good returns on the first day of trading, the stock rose roughly 37.8% from its issue price. It went on the market on Tuesday.

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This was the seventh IPO of Adani Group companies, bringing the total market capitalization of all Adani Group companies to roughly Rs 11.30 trillion.

Adani Wilmar Ltd, an equal joint venture between Adani Enterprises Ltd and Wilmar International Ltd that owns the Fortune brand of edible oils, had set its initial public offering price at Rs 230 per share. The company raised around Rs 3,600 crore through its public offering.

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The issuance proceeds of Rs 1,900 crore would be utilized for capital expenditure, Rs 1,058.90 crore for debt repayment, and Rs 450 crore for strategic acquisition and investment.

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Adani Wilmar, founded in January 1999 on the flood plains of the Sabarmati River in Ahmedabad, has risen to become the country’s largest edible oil player during the last two decades. It now has first-place rankings in the soybean (No. 1), mustard (No. 1), and palm oil (No. 2) sectors. AWL’s most valuable asset is its supremacy in the country’s largest FMCG category, edible oil, which has annual sales of approximately Rs 5 lakh crore.