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Business News/ Companies / News/  Adani Wilmar 4,500 crore IPO is back on track
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Adani Wilmar ₹4,500 crore IPO is back on track

The IPO is on track to be completed before the end of the calendar year, depending on when the final approval from the regulator comes, people familiar with the matter said

A successful IPO will make this the seventh Adani Group company to be listedPremium
A successful IPO will make this the seventh Adani Group company to be listed

Adani Wilmar Ltd’s initial public offering (IPO), which was put on hold by the markets regulator, is back on track with the Securities and Exchange Board of India (Sebi) resuming the approval process for the share sale, according to updates on the Sebi’s website and people aware of the development.

Sebi usually puts its approval for a draft prospectus in abeyance if it needs more inputs from other regulatory bodies or there are pending investigations against a company by it or any other regulatory body or government authority.

While Sebi did not specify the reason for putting the approval process of Adani Wilmar on hold, the people cited above said it was linked to investigations in other Adani Group firms. In July, the minister of state for finance, Pankaj Chaudhary, told Parliament that the securities regulator and customs authorities are probing some Adani Group firms for non-compliance with rules. Besides Sebi, the Directorate of Revenue Intelligence, or DRI, is also “investigating certain entities" belonging to Adani Group for compliance with another set of local laws, Chaudhary said in response to a lawmaker’s question. However, Chaudhary didn’t elaborate on the investigations or name the Adani Group companies being probed.

Mint reported on 6 August that Sebi was also examining Adani Power Ltd’s plan to delist its shares from stock exchanges.

“The approval process is back on track, and the company and its advisers are already planning on hitting the road to meet institutional investors. The IPO is on track to be completed before the end of the calendar year, depending on when the final approval from the regulator comes," said one of the two people cited above, requesting anonymity.

“In the case of Adani Wilmar, it was not an investigation; the regulator had sought certain information, which the company provided; and based on that, the approval process has been resumed," the second person cited above said.

An email sent to the Adani Group remained unanswered till press time.

Adani Wilmar, an equal joint venture between Adani Enterprises Ltd and Wilmar International Ltd and the owner of the Fortune brand of edible oils, filed draft IPO documents for its proposed initial public offering on 3 August.

“The proposed listing of Adani Wilmar on the stock exchanges will comprise an IPO in the form of a fresh issue of new equity shares by Adani Wilmar for an amount of up to 4,500 crore (approximately $600 million). There will not be any secondary offering," Adani Enterprises told the stock exchanges.

Mint was the first to report on the Adani Group’s plans to take its fast-moving consumer goods joint venture with Wilmar public in March.

The proceeds from the IPO are proposed to fund the expansion of Adani Wilmar’s manufacturing facilities and develop new manufacturing facilities, repay borrowings, acquire companies, and other investments.

Adani Wilmar has the largest range of edible oils comprising soya bean, sunflower, mustard, and rice bran. Its Fortune brand of oil has around 20% market share in India.

A successful IPO will make this the seventh Adani Group company to be listed on the Indian bourses. Other listed entities include Adani Enterprises, Adani Ports and Special Economic Zones Ltd, Adani Transmission Ltd, Adani Power Ltd, Adani Total Gas Ltd and Adani Green Energy Ltd.

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ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Published: 28 Sep 2021, 11:56 PM IST
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