Adani Wilmar IPO Placed on Hold Amid Indian Probe of Adani Group
Adani Wilmar products, including its flagship ‘Fortune’ edible oil brand. (Photo: BloombergQuint)

Adani Wilmar IPO Placed on Hold Amid Indian Probe of Adani Group

India’s securities regulator has put a proposed initial public offering from food company Adani Wilmar Ltd. on hold. 

The joint venture of India’s Adani Group and Singapore-based Wilmar International Ltd. had filed a draft prospectus on Aug. 2 for an IPO of 45 billion rupees ($605 million). The Securities and Exchange Board of India listed the filing’s processing status as “issuance of observations kept in abeyance,” without providing any specific reasons, in an update posted on its website Friday.

“We have not received any formal communication from SEBI,” a spokesperson for Adani Group said. “While we have always been fully complaint with applicable SEBI regulations, we have made full disclosure to SEBI on specific information requests from them in the past. We will continue to cooperate with the regulators in the future as well.”

Junior finance minister Pankaj Chaudhary told parliament in July that some firms controlled by billionaire Gautam Adani are being probed by SEBI over compliance with local securities rules. The Directorate of Revenue Intelligence is separately investigating Adani Group entities for compliance with another set of local laws.

India is off to a record pace of IPOs so far in 2021, and new listings are outperforming the benchmark by the most in seven years. Adani Wilmar’s filing said it plans to issue all new equity shares for its offer and use proceeds to expand manufacturing facilities, make strategic acquisitions and repay borrowings.

©2021 Bloomberg L.P.

Also read: Adani Wilmar Sees ‘Fortune’ Key To Double Its Revenue From Consumer Business In Five Years

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