Adani Wilmar Limited has suffered a major setback from the market regulating body SEBI. Actually, SEBI has stopped the initial public offering (IPO) of this company of Gautam Adani Group.
The Securities and Exchange Board of India (SEBI) said that the release of comments on Adani Wilmar’s draft prospectus has been put on hold. Generally, the comments given by SEBI to the draft prospectus are considered as approval for the IPO. After this companies can bring IPO. Also Read: SBI Customers Alert! SBI is giving 5 lakh rupees for the treatment of Covid-19, know how to apply
The reason for the stay on the IPO: The reason for the ban on the IPO of Adani Wilmar is the investigation going on against the companies of the Adani group. In July last, Union minister Pankaj Choudhary told Parliament that securities regulators and customs authorities were probing some of the Adani group companies for non-compliance with the rules. Choudhary, however, did not elaborate on the investigation. Also Read: NPS: You Will become a millionaire before retirement, Rs 50,000 will come in the account every month
Plan to raise 4,500 crore: Let us tell you that the edible oil company Adani Wilmar Limited had submitted documents with SEBI to raise Rs 4,500 crore through IPO. The company intends to use the money raised through the IPO for expansion of existing manufacturing plants and setting up of new factories. Apart from this, the company intends to use this amount for debt repayments, strategic acquisitions and investments as well as for general corporate activities. Also Read: Post Office- Withdraw money from Post Office account, know what is the process here?
Competition with Ramdev’s company: Adani sells edible oils under the Wilmar Fortune brand and is the flagship entity of the sector. The company gets a business rivalry from yoga guru Baba Ramdev’s Ruchi Soya. In the year 2019, there was a competition between Patanjali Group and Adani Wilmar for the acquisition of Ruchi Soya. However, Adani Wilmar later distanced himself from Ruchi Soya’s claim. Ruchi Soya was acquired by Yoga Guru Baba Ramdev’s Patanjali Group. Also Read: PF account holders get 7 lakh rupees for free, know when and how to claim?
