Capital markets regulator Sebi has kept the proposed Rs 4,500-crore initial share-sale of edible oil major Adani Wilmar Ltd (AWL) in "abeyance".
However, the Securities and Exchange Board of India (Sebi) did not clarify further.
The company had filed preliminary papers with Sebi on August 3, 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 Adani Wilmar IPO, according to an update in the SEBI website as on August 13.
In market parlance, observations of Sebi is a kind of go-ahead to float a public issue.
In a statement on Saturday, Adani Group spokesperson said, "we have not received any formal communication from Sebi with respect to the IPO observations being kept in abeyance".
"While we have always been fully compliant with applicable Sebi Regulations, we have made full disclosure to Sebi on specific information requests from them in the past.
"We will continue to cooperate with the regulators in the future as well," the spokesperson added.
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 Rs 4,500 crore (approximately USD 600 million).
There will not be any secondary offering, Adani Enterprises Ltd (AEL), the flagship firm of Adani group, had said in a regulatory filing.
The company, which sells cooking oils under the Fortune brand, is a major player in the edible oil industry.
Proceeds from the IPO 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.
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.
Photograph: Amit Dave/Reuters
