Adani Wilmar share sale is back on track

MUMBAI: Adani Wilmar Ltd’s initial public offering (IPO), which was put on hold by the markets regulator, is back on track with the Securities and Exchange Board of India (Sebi) resuming the approval process for the share sale, according to updates on the Sebi’s website and people aware of the development.

Sebi usually puts its approval for a draft prospectus in abeyance if it needs more inputs from other regulatory bodies or there are pending investigations against a company by it or any other regulatory body or government authority.

While Sebi did not specify the reason for putting the approval process of Adani Wilmar on hold, the people cited above said it was linked to investigations in other Adani Group firms. In July, the minister of state for finance, Pankaj Chaudhary, told Parliament that the securities regulator and customs authorities are probing some Adani Group firms for non-compliance with rules.

Besides Sebi, the Directorate of Revenue Intelligence, or DRI, is also “investigating certain entities” belonging to Adani

Group for compliance with another set of local laws, Chaudhary said in response to a lawmaker’s question. However, Chaudhary didn’t elaborate on the investigations or name the Adani Group companies being probed.

“The approval process is back on track, and the company and its advisers are already planning on hitting the road to meet institutional investors. The IPO is on track to be completed before the end of the calendar year, depending on when the final approval from the regulator comes,” said one of the two people cited above, requesting anonymity.

“In the case of Adani Wilmar, it was not an investigation; the regulator had sought certain information, which the company provided; and based on that, the approval process has been resumed,” the second person cited above said.

An email sent to the Adani Group remained unanswered till press time.

Adani Wilmar, an equal joint venture between Adani Enterprises Ltd and Wilmar International Ltd and the owner of the Fortune brand of edible oils, filed draft IPO documents for its proposed initial public offering on August 3.