Sebi puts Gemini Edibles’ ~2,500-cr IPO in abeyance

Capital markets regulator Securities and Exchange Board of India (Sebi) has put the proposed ~2,500-crore initial share-sale of edible oil major Gemini Edibles & Fats India in “abeyance”, an update with the watchdog showed on Monday.

However, the Sebi did not provide further information.

On August 9, the company had filed preliminary papers with Sebi to raise funds through an initial public offering (IPO).

Without disclosing the reason, Sebi said “issuance of observations kept in abeyance” with regard to the IPO of Gemini Edibles & Fats India according to an update on the Sebi's website as of August 20.

In market parlance, observations of Sebi is a kind of go-ahead to float a public issue.

The proposed IPO is entirely an offer for sale (OFS) by the company's promoter and existing shareholders, according to the draft red herring prospectus (DRHP).

As a part of the OFS, Black Riverfood 2 Pte will offload equity shares worth ~1,250 crore, Golden Agri International Enterprises Pte Ltd will sell shares to the tune of ~750 crore, and Investment and Commercial Enterprise Pte up will divest shares worth ~250 crore.

In addition, shares to the tune of up to ~225 crore will be offloaded by Alka Chowdhry and up to ~25 crore by Pradeep Kumar Chowdhry.