Capital markets regulator the Securities and Exchange Board of India (Sebi) has put the rupees 4,500-crore initial public offering (IPO) of the edible oil giant Adani Wilmar Limited (AWL) in “abeyance”.
According to the Sebi website, the edible oil giant's IPO has been “kept in abeyance”.
Adani Wilmar, a equal share joint venture between the Adani Group and Singapore-based Wilmar Group, had filed its draft red herring prospectus (DRHP) with the Sebi on 2nd August.
While the market regulator has not given any reason for keeping the IPO in suspension due to an ongoing investigation into the group’s flagship company Adani Enterprises might have prompted the Sebi to put the matter on hold.
Adani Enterprises, promoted by Gautam Adani who holds 50 percent stake in Adani Wilmar and owns the edible oil brand ‘Fortune’.
The propound IPO offer worth rupees 4,500 crore will comprise a fresh issue of equities by the group and there will not be any secondary offering.
If there are pending investigations against a group by the Sebi or any other regulatory body or government authority, the capital market regulator normally puts the IPO in ssuspension.