Adani Wilmar’s Rs. 4500 Crores IPO Put on Hold over Pending Probe by SEBI

India’s market regulator SEBI has put the Rs. 4500 crores IPO of Adani Wilmar on hold due to an ongoing investigation against Adani Enterprises. SEBI mentioned that the observation issuance on the DRHP had been kept ‘in abeyance’ without further clarification.

Let us take a closer look at this subject to know more!

All you Need to Know about the Pending Probe of Adani Wilmar IPO

The joint venture of India-based Adani Group and Singapore-based Wilmar international Ltd had previously filed a DRHP on 2 August 2021 for an IPO worth Rs. 45 billion. The proposed IPO will contain a fresh issue of equity shares by the fast-moving consumer goods major. Further, this IPO will not have any secondary offering.

That said, as of now, SEBI has not provided further clarity on Adani Wilmar IPO hold. However, the regulatory body generally puts a DRHP in abeyance if:

• It needs more inputs from regulatory bodies
• Or, in case of further investigations against a company by SEBI or government authority

In July, it was informed that SEBI and designated authorities are currently investigating Adani Group companies for their inability to comply with certain rules.

That’s not all!

Besides SEBI, the DRI is also conducting serious investigations on certain entities that belong to this group. As per Mr Chaudhary, the investigations are a part of complying with another group of local laws.

So, What is the Company’s Take on this Situation?

Adani’s spokesperson has not yet received any formal communication from SEBI regarding this matter. He further added that the company has no connection with the FPIs, and said that the media is continually misleading investing opportunities by raising these issues repeatedly.

The company stated that it has made full disclosure to the market regulator previously and will continue to cooperate with the rules and regulations in the future as well.

Final Takeaway

Adani Wilmar is a renowned edible oil manufacturer for the renowned brand named ‘Fortune’. It also operates in other segments such as atta, rice, basmati, pulses, rawa, and besan.

Through its IPO, this company plans to expand its existing manufacturing facilities. The company will also use the funds to develop new manufacturing facilities and fund strategic acquisitions.

While the company has not yet heard anything from the market regulator, it would be too soon to formulate further speculations.

Furthermore, as per SEBI, the regulating body will update the DRHP processing status on a weekly basis for interested investors.

Frequently Asked Questions

1. Who are the promoters for Adani Wilmar?

The promoters of this company are Adani Enterprises Ltd, Adani Commodities LLP, Lence Pte Ltd.

2. What is the net profit of Adani Wilmar?

For the FY ending in March 2021, the company’s reported profits stood at Rs. 654.56 crores.

3. What are the other Adani Group companies that feature listing on stock exchanges?

Apart from Adani Enterprises, there are six other Adani Group companies on stock exchanges. They are Adani Total Gas, Adani Transmission, Adani Power, Adani Ports and Special Economic Zone, and Adani Green Energy.