New Delhi: Capital market regulator Self The edible oil major has retained its proposed initial share sale of Rs 4,500 crore Adani Wilmar Limited (AWL) in “postponed”. However, the Securities and Exchange Board of India (SEBI) did not clarify further.
The company had filed preliminary documents with SEBI on August 3 to raise funds through an initial public offering (IPO). Without disclosing the reason, SEBI stated that with regard to “issuance of observations placed in the observation” Adani Wilmar IPO, as per an update in SEBI’s website dated August 13.
In market parlance, SEBI’s comments are a kind of way forward to bring in a public issue. The proposed listing of AWL on stock exchanges would include an IPO in the form of fresh issue of fresh equity shares by AWL for an amount of up to Rs 4,500 crore (approximately USD 600 million).
Adani Enterprises Ltd (AEL), the flagship firm of the Adani Group, had said in a regulatory filing that there would be no secondary offering. The company, which sells cooking oils under the Fortune brand, is a major player in the edible oil industry.
It is proposed to use the proceeds from the IPO by AWL to fund 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. 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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