Markets regulator Sebi has put the Rs 4,500-crore initial public offering (IPO) of Adani Wilmar Ltd in “abeyance”. As per the Securities and Exchange Board of India (Sebi) website, the Adani Wilmar IPO has been “kept in abeyance”.
Adani Wilmar, a 50:50 joint venture between the Adani Group and Singapore-based Wilmar Group, had filed its draft red herring prospectus (DRHP) with the Sebi on August 2.
While the regulator has not given any reason for keeping the IPO in abeyance, an ongoing investigation into the group’s flagship company Adani Enterprises might have prompted the Sebi to put the issue on hold. Adani Enterprises, promoted by Gautam Adani, holds 50 per cent stake in Adani Wilmar, which owns the edible oil brand ‘Fortune’.
The proposed IPO offer worth Rs 4,500 crore will comprise a fresh issue of equity shares by the firm and there will not be any secondary offering. If there are pending investigations against a company by the Sebi or any other regulatory body or government authority, the regulator normally puts the IPO in abeyance.