Adani Wilmar Share Sale Halted Amid US Probe

26 Nov 2024 , 05:26 PM

According to news reports, Adani Enterprises Ltd. and Wilmar International Ltd. are reportedly delaying a planned sale of at least 12% of their Indian food business following a US bribery indictment against the billionaire founder Gautam Adani.

In order to comply with local securities law, which mandates that at least 25% of the holdings be with non-founders within three years of listing, Adani Wilmar Ltd., an equal joint venture between Singapore-based commodity trader Adani and India’s Adani Group, was scheduled to begin the share sale this month. The business, which went public in 2022, has until February of the following year to comply.

The dominant owners of Adani Wilmar currently hold 86.8% of the company, which is significantly more than the 75% maximum allowed. As of 1:51 p.m. in Mumbai, the company’s shares were down 2% at 291.45 rupees.

One of the sources, who asked not to be named due to regulations, stated that the company that produces Fortune brand cooking oils, wheat flour, and other food items will approach India’s capital market regulator for an extension. According to the company’s representatives and advisors, the US bribery charges make it very difficult to complete the sale before the February deadline.

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