Adani Wilmar IPO filing gets go ahead from India’s regulators

Palm tree at plantation in Sumatra, IndonesiaPalm tree at plantation in Sumatra, Indonesia

The proposed initial public offering (IPO) of Adani Wilmar (AWL), a 50:50 joint venture between the Adani Group and Singapore-listed Wilmar, has gotten a go-ahead from the Securities and Exchange Board of India, according to a posting on SEBI’s website for 14 October.

Wilmar noted Monday the offering has been issued an “observations letter” for its draft red herring prospectus (DRHP). An issuance of observations would mean SEBI has provided a go-ahead for an IPO.

“AWL is in the process of responding to SEBI on its observations with regard to its DRHP and Wilmar will update the market on any material developments,” Wilmar said in a filing to SGX Monday.

“Shareholders and investors are advised to take note that the proposed listing of AWL, its schedule 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,” Wilmar said.

Wilmar added there was no assurance the IPO will proceed, and advised shareholders and investors to use caution when dealing with the company’s securities.

Wilmar has previously said the proposed listing of Adani Wilmar would include an issue of new equity shares to raise up to 45 billion rupees, or around US$600 million, without any secondary offering. If the IPO proceeds, the shares would be listed on BSE and the National Stock Exchange of India.

The funds are earmarked to fund capital expenditure to expand existing and develop new manufacturing facilities, repay and prepay borrowings, fund strategic acquisitions and investments and for general corporate purposes, Wilmar has previously said.

India-based AWL is a large fast-moving consumer goods (FMCG) company offering most of the country’s essential kitchen commodities, including edible oil, wheat flour, rice, pulses and sugar, under a range of brands. Its Fortune brand is the best-selling edible oil brand in India, the company’s website said.