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Edible oil major Adani Wilmar Ltd (AWL) on Monday filed the draft red herring prospectus with markets regulator Sebi for an initial public offer to raise up to Rs 4,500 crore.
The company, which sells cooking oils under the Fortune brand, is a major player in the edible oil industry.
"The proposed listing of AWL on the stock exchanges will comprise an IPO in the form of fresh issue of new equity shares by AWL for an amount of up to INR 45,000 million (approximately $600 million).
"There will not be any secondary offering," Adani Enterprises Ltd (AEL), the flagship firm of Adani group, said in a regulatory filing.
AEL said net proceeds from the IPO (Initial Public Offer) are proposed to be used by AWL to fund capital expenditure for expansion of existing manufacturing facilities.
The funds will also be utilised for developing new manufacturing facilities, repayment/prepayment of borrowings, to fund strategic acquisitions and investments, and general corporate purposes.
"The proposed listing is intended to further the growth of AWL's operations by increasing its market visibility and awareness among current and potential customers," it said.
According to AEL, the proposed listing and issue price of the IPO shares are subject to many factors, including but not limited to the book building process under Indian regulations, receipt of applicable approvals and external factors such as price/earnings ratio, level of investor interest, prevailing market conditions and certain other considerations.
"As there is no assurance that the proposed listing will proceed, shareholders and potential investors are advised to exercise caution when dealing with the securities of the company," the filing said.
AWL is a 50:50 joint venture company between the Adani group and the Wilmar group.
Currently, six Adani group companies are listed on domestic bourses.
Apart from AEL, other listed ones are Adani Transmission, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Ports and Special Economic Zone.