The markets regulator has put the initial public offering (IPO) of Adani Wilmar Ltd on hold, according to the regulator’s website.
The Securities and Exchange Board of India (Sebi) said the issuance of observations on the Adani Wilmar draft prospectus has been kept in abeyance.
Sebi usually puts its approval for a draft prospectus in abeyance in case it needs more inputs from other regulatory bodies or if there are pending investigations against a company by Sebi or any other regulatory body or government authorities.
To be sure, Sebi did not specify the reason for putting the approval process of Adani Wilmar on hold.
In July, junior finance minister Pankaj Chaudhary told the Parliament that the securities regulator and customs authorities are investigating some Adani Group companies for non-compliance with rules.
Besides the Securities and Exchange Board of India, the Directorate of Revenue Intelligence, or DRI, is also “investigating certain entities” belonging to the Adani Group for compliance with another set of local laws, junior finance minister Chaudhary said in response to a lawmaker’s question in the Parliament, Bloomberg reported. Chaudhary didn’t elaborate on the investigations or name the Adani group companies being probed.
On August 3, Adani Wilmar Ltd, the 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.