Big blow to Gautam Adani’s company, Sebi banned by IPO

Adani Wilmar Ltd has suffered a setback from market regulator SEBI. In fact, SEBI has stopped the Gautam Adani Group’s initial public offering (IPO).

The Indian Securities and Exchange Board (SEBI) has said it was barred from releasing comments about Adani Wilmar’s draft prospectus. Generally, comments made by SEBI to the draft prospectus are considered an endorsement by the IPO. After this, companies can bring in an IPO.

Causes of IPO Ban: The ongoing investigation into Adani Group companies is the reason behind the blocking of Adani Wilmar’s IPO. Last July, Union Minister Pankaj Chaudhary told Parliament that the Securities Regulators and Customs Authorities were investigating some Adani Group companies for not complying with the rules. However, Chaudhry did not elaborate on the investigation.

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Plan to raise Rs 4,500 crore: Let us tell you that the edible oil company Adani Wilmar Ltd has filed documents with SEBI to raise Rs 4,500 crore through its IPO. The company intends to use the money raised through the IPO to expand existing manufacturing units and establish new factories. In addition, the company intends to use this amount for debt repayment, strategic acquisitions and investments as well as general corporate activities.

Competition by Ramdev Company: Adani Wilmar sells edible oils under the Fortune brand and is the leading agency in the field. The company gets business competition from Yoga Guru Baba Ramdev’s Ruchi Soya. In 2019, there was a competition between Patanjali Group and Adani Wilmar for the acquisition of Rusty Soy. Adani Wilmar, however, later turned away from the taste soy statement. Taste Soya was acquired by Patanjali Group of Yoga Guru Baba Ramdev.

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