Why has SEBI put the proposed IPO of Adani Wilmar on hold?

SEBI has put the IPO of Adani Wilmar due to pending investigations with respect to group company, Adani Enterprises. However, Adani group has denied receiving any such intimation from SEBI in this regard. According to the SEBI website, the issue has been kept in abeyance. Normally, SEBI can keep IPOs in abeyance for 45 days in such cases and then extent this delay further to 90 days if the situation really warrants.

Currently, apart from SEBI, the Directorate of Revenue Intelligence is also investigating entities belonging to the Adani Group for compliance with local laws. Adani Wilmar is a 50:50 joint venture between Adani Enterprises and Wilmar International of Singapore. The IPO of Adani Wilmar was entirely proposed as a new issue of Rs.4,500 crore with no offer for sale component. IPO proceeds will be used to fund capex and for debt repayment.