SEBI has currently stopped the Rs 4500 crore IPO of Adani WilmarLtd (AWL), the company of veteran industrialist Gautam Adani. SEBI has not given any reason for this. The company had filed the initial documents for the IPO on August 3. A notice dated August 13, uploaded on the website of SEBI, states that Adani Wilmar is currently barred from issuing the observation of the IPO. Issuing SEBI’s observation means that the company has to proceed with the process of IPO.
Adani Wilmar’s annual turnover is 30 thousand crores
Adani Wilmar is a joint venture between the Adani Group and Singapore-based Wilmar, in which both have an equal stake. The company was started in 1999 and sells cooking oil and other food products like rice and sugar under the Fortune brand. Apart from this, Adani Wilmar, which also sells soap, handwash and hand sanitizer, has an annual turnover of more than 30 thousand crores, of which 24 thousand crores is from edible oil business and now it aims to become a major company in FMCG sector.
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The fund will be used to repay the loan
In a regulatory filing, Adani Enterprises has informed about the filing of Draft Red Herring Prospectus (DRHP) with SEBI on behalf of Adani Wilmar Limited. Under the IPO, new shares worth Rs 4500 crore will be issued. The fund will be used for expansion of manufacturing plants, setting up of new facilities, debt servicing, acquisition and investment and general corporate purposes.