Adani Wilmar files draft documents for Rs 4,500 crore IPO
Edible oil major Adani Wilmar Ltd (AWL) on Monday filed a draft red herring prospectus with markets regulator Sebi for an initial public offering of up to Rs 4,500 crore. The company, which sells cooking oils under the Fortune brand, is a major player in the edible oil industry.
“The proposed listing of AWL on stock exchanges will include an IPO by AWL in the form of fresh issue of fresh equity shares for an amount of up to Rs 45,000 million (approximately USD 600 million).
Adani Enterprises Ltd (AEL), the flagship firm of the Adani Group, said in a regulatory filing, “There will be no secondary offering.”
AEL said the net proceeds from the IPO (initial public offering) are proposed to be used by AWL for capital expenditure for expansion of existing manufacturing facilities. The funds will also be used to fund development of new manufacturing facilities, repayment/prepayment of borrowings, strategic acquisitions and investments and general corporate purposes.
“The proposed listing is intended to further the growth of AWL’s operations by increasing market visibility and awareness among current and potential customers,” it said.
According to AEL, the proposed listing and issue price of IPO shares are subject to a number of factors, including, but limited to, the book building process under Indian regulations, receipt of applicable approvals and external factors such as price/earnings ratio, level of investor are not. Interest, current market conditions and some other considerations.
“With no assurance that the proposed listing will proceed, shareholders and potential investors are advised to exercise caution with the company’s securities,” the filing said.
AWL is a 50:50 joint venture company between Adani Group and Wilmar Group. At present, six companies of the Adani Group are listed on the domestic stock exchanges. In addition to AEL, others listed are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zones.
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