Businessman Gautam Adani-led Adani Group suffered a major setback from market regulator SEBI. SEBI has banned the IPO of Adani Wilmar's Adani Group company. The reason for the moratorium is the Foreign Portfolio Investment (FPI) probe against Adani Enterprises. The company was preparing to raise Rs 4,500 crore through IPO.
According to SEBI rules, if the company applying for IPO is under investigation in any department, then its IPO cannot be approved for 90 days. Even after this, the IPO can be postponed for 45 days. In June 2021, SEBI also banned the IPO of low-cost airline GoFirst as the probe against its promoter was going on.
Adani Wilmar is a joint venture between Adani Enterprises and Singapore-based Wilmar International, which was formed in 1999. Adani Enterprises holds a 50% stake in Adani Wilmar. The company is engaged in the business of manufacturing edible oil. Apart from this, the company also manufactures and sells items like basmati rice, flour, maida, semolina, Rava, pulses and gram flour. Most of the products come under the Fortune brand name.
Adani Wilmar's plan is to become the country's largest food company by 2027. It is believed that through the IPO, the company will fulfill its target.
Five of the six listed Adani Group companies have a market capitalization of more than Rs 1 lakh crore. The listed companies of the Adani Group include Adani Enterprises, Adani Ports and Special Economic Zone, Adani Transmission, Adani Power, Adani Total Gas and Adani Green Energy.
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