The market regulator Sebi has put Adani Wilmar's initial public offering (IPO) in abeyance due to an investigation related to Adani Group's flagship company,
Adani Enterprises.
Adani Enterprises stock will be in focus on Monday. Adani Wilmar is a 50:50 joint venture between Adani Group and Wilmar Group.
Adani Group companies are under investigation by Sebi and the Directorate of Revenue Intelligence (DRI) over some violations of the regulations. The information was announced by the Minister of State for Finance in the Parliament earlier this month.
Meanwhile, Adani Wilmar had filed its draft red herring prospectus with the market regulator Sebi for launching its initial public offering on stock exchanges BSE and NSE. The FMCG firm has proposed an IPO aggregating to a fresh issue of Rs4,500cr (about $600M).
As per the Sebi norms, a related entity of a company that is under investigation cannot get IPO approval for 90 days which can be extended for additional 45 days.
Adani Wilmar plans to utilize proceeds of the IPO for - funding capital expenditure for expansion of AWL's existing manufacturing facilities and developing new manufacturing facilities; repayment/prepayment of borrowings; to fund strategic acquisitions and investments; and general corporate purposes.
At around 09.17 AM, Adani Enterprises was trading at Rs1412.50 per piece down by 1.05% on Sensex. The stock has touched an intraday high and low of Rs1418.15 per piece and Rs1383.40 per piece respectively.