Market regulator Securities and Exchange Board of India (SEBI) has put on hold Adani Wilmar’s Rs. 4500 crores initial public offering (IPO). The IPO was stalled due to an investigation that is pending against the port to energy entity of Adani group.
The market regulator said on its website that Adani Wilmar’s IPO is “kept in abeyance” due to the investigation against the company.
According to SEBI’s policy, if one department of the regulator is investigating a company, a related entity that has filed for an IPO may not get approval for 90 days. This delay can be further extended by another 45 days.
A spokesperson of Adani Wilmar told MoneyControl that they have not received any formal communication from SEBI.
Adani Enterprises is under investigation due to foreign portfolio investments (FPI) from entities registered in Mauritius. “As regards the query raised by you about the FPI, we would like to mention that we have communicated to media and the public at large that the group has no connection with the FPIs, either directly or indirectly.” Adani spokesperson told MoneyControl.
Adani Wilmar is a joint venture between Adani Enterprises and the Wilmar Group. The company has 22 manufacturing units across 10 states. The company reported a net profit of Rs. 654.56 crore in the financial year 2020-21.
