Adani Wilmar files draft with SEBI for Rs 4,500 crore IPO

The edible oil giant has filed a draft with market regulator Sebi to launch Rs 4,500 crore IPO.

The edible oil conglomerate Adani Wilmar Ltd (AWL) on Monday filed the draft red herring prospectus (DRHP) with markets regulator SEBI for an initial public offer (IPO) to raise up to rupees 4,500 crore.

 

The edible oil business major is an equal joint venture between Adani Group and a Singapore based company Wilmar which was formed in 1999.

 

It sells cooking oils under the 'Fortune' brand and is a major player in edible oil industry as well as various other food products like rice and sugar.

 

The proposed listing of Adani Wilmar on the domestic stock exchanges will comprise an IPO in the form of fresh issue of new equities by the company for an amount of up to rupees 45,00 crore.

 

The flagship firm of Adani group, Adani Enterprises Ltd (AEL) said in a regulatory filing that there will not be any secondary offering.

 

Adani Enterprises said net proceeds from the IPO are proposed to be used by AWL to fund capital expenditure for expansion of existing manufacturing facilities.

 

The funds will also be utilised for bring in new manufacturing facilities, payments, to fund strategic acquisitions, investments, and general corporate purposes.

 

The company said in its regulatory filing, "The proposed listing is intended to further the growth of AWL's operations by increasing its market visibility and awareness among current and potential customers."

 

As per the Adani Enterprises, this proposed listing and issue price of the initial public offer are subjected to many factors.

 

To which, it includes but not limited to the book building process under Indian regulations, receipt of applicable approvals and external factors such as price/earnings ratio and other conditions.

 

The company's regulatory filing also stated, "As there is no assurance that the proposed listing will proceed, shareholders and potential investors are advised to exercise caution when dealing with the securities of the company."

 

At present, there are six Adani group companies are listed on Indian stock market.

 

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