Mumbai: SEBI has postponed the approval of the IPO of this Adani Group company for the time being. This company of Gautam Adani’s group is the owner of ‘Fortune’, one of the largest edible oil brand in the country. Know what is the reason for this ban.
Adani Wilmar Ltd., the flagship company of the Adani Group. The IPO has not yet been approved. The company had applied to market regulator SEBI for this IPO this month, but its approval has been put on hold.
How much is this IPO
Adani Wilmar Ltd., owner of Fortune, one of the country’s largest edible oil brands, had applied for IPO (DRHP) with SEBI on August 2. This IPO of the company is about Rs 4,500 crore and in this new shares of this FMCG company are to be issued. Apart from this, no other offer has been made by the company in the IPO.
That’s why SEBI put a stop!
As per the information available on SEBI website, Adani Wilmar Ltd. The IPO has been placed in ‘abeyance’ (ie on hold). However, SEBI has not given any concrete reason for this. But media reports say that the owner of the Fortune brand is Adani Wilmar Ltd. Currently, this ban on approving the IPO has been imposed due to the ongoing investigation against the group’s flagship company Adani Enterprises.
What is SEBI’s rule
According to the rules of SEBI, if one of its departments is investigating a company, then the concerned company cannot get approval for bringing IPO etc. for 90 days. It can be extended further by 45 days.
Adani Wilmar Ltd. largest edible oil company
Adani Wilmar Ltd. is a joint venture between Adani Enterprises, the flagship company of the Adani Group, and the Wilmar Group of Singapore. Adani Enterprises and Wilmar Group have 50-50 percent stake in it.
Although the biggest business of this company is edible oil, but it is a low margin business. The reason for the company’s growth and higher market share is the location of its own edible oil refineries near the Adani Group’s port, which helps in importing and processing oil at a lower cost. Adani Wilmar Ltd.’s net profit in the financial year 2020-21 has been Rs 654.56 crore.
