Synopsis: The 4,500-crore Adani Wilmar IPO has been “kept in abeyance” by the market regulator due to an investigation into Adani Enterprises, which is being scrutinised for foreign portfolio interests.
Due to an investigation ongoing against the flagship entity of ports-to-energy conglomerate Adani Group, market regulator Securities and Exchange Board of India (SEBI) has put the Rs 4,500-crore initial public offering (IPO) of Adani Wilmar on hold. SEBI’s views on Adani Wilmar’s IPO have been “kept in abeyance,” according to the regulator’s website.
The Adani Wilmar IPO has been halted by SEBI due to an ongoing investigation into Adani Enterprises, according to a source familiar with the situation who did not want to be identified. Adani Enterprises owns 50% of Adani Wilmar, which produces the iconic ‘Fortune’ edible oil brand.
According to SEBI policy, if one of the regulator’s departments is examining a company, a linked entity that has filed for an IPO may not receive permission for 90 days. This period of time can be extended by another 45 days.
When Moneycontrol contacted Adani Group for clarification, the company stated that it had not received any formal notification from SEBI regarding the IPO observations being put on hold.
“As regards the query raised by you about the FPI, we would like to mention that we have communicated to media and public at large that the group has no connection with the FPIs, either directly or indirectly. Unfortunately, the media is repeatedly raising the issue time and again misleading the investing community. FPIs are investors like other investors/shareholders in Adani Group and act independently – having no relationship with Adani Group,” a spokesperson said.
“While we have always been fully compliant with applicable SEBI Regulations, we have made full disclosure to SEBI on specific information requests from them in the past. We will continue to cooperate with the regulators in the future as well,” they added.
Meanwhile, before SEBI authorised another Adani group firm to be listed, TMC Lok Sabha MP Mohua Mitra demanded clarity and openness in existing Adani listed companies. According to the person indicated above, Adani Enterprises is being investigated because of foreign portfolio interests in the firm from entities registered in Mauritius. According to the individual, SEBI has yet to receive any contact from the Mauritius regulator on this matter.
The company is a 50-50 joint venture between Adani Enterprises, directed by Gautam Adani, and the Wilmar Group, based in Singapore. In 1999, the JV was created. Adani Wilmar aims to be the Adani Group’s seventh firm to be listed on a stock exchange.
