IPO WATCH - After Adani Wilmar, Gemini Edibles' Rs 2,500-cr IPO put in abeyance; proposed issue entirely OFS by promoters, shareholders - Know DETAILS

Gemini Edibles IPO - Capital markets regulator Sebi has put the proposed Rs 2,500-crore initial share-sale of edible oil major Gemini Edibles & Fats India in "abeyance", an update with the watchdog showed on Monday. However, the Securities and Exchange Board of India (Sebi) did not provide further information, a PTI report said.

The company, which sells cooking oils under the Fortune brand, is a major player in the edible oil industry.

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The processing status of draft offer documents is being updated on a weekly basis and the status as of August 27, 2021, would be uploaded on the next working day (August 30), according to the Sebi website. 

On August 9, the company had filed preliminary papers with Sebi to raise funds through an initial public offering (IPO). Without disclosing the reason, Sebi said "issuance of observations kept in abeyance" with regard to the IPO of Gemini Edibles & Fats India according to an update on the Sebi's website as of August 20.

In market parlance, observations of Sebi is a kind of go-ahead to float a public issue.

The proposed IPO is entirely an offer for sale (OFS) by the company's promoter and existing shareholders, according to the draft red herring prospectus (DRHP), this report said.

As a part of the OFS, Black Riverfood 2 Pte will offload equity shares worth Rs 1,250 crore, Golden Agri International Enterprises Pte Ltd will sell shares to the tune of Rs 750 crore, and Investment and Commercial Enterprise Pte up will divest shares worth Rs 250 crore.

In addition, shares to the tune of up to Rs 225 crore will be offloaded by Alka Chowdhry and up to Rs 25 crore by Pradeep Kumar Chowdhry.

Gemini is one of the leading edible oils and fats companies in the country. It is engaged in the business of manufacturing, distribution and branding of edible oils and speciality fats.

Gemini sells its products in the edible oil segment under the brand Freedom.

The proposed public issue is aimed at achieving the benefits of listing the equity shares on the stock exchanges.

Axis Capital, Credit Suisse Securities (India) Private Ltd, and Kotak Mahindra Capital Company are the merchant bankers to the proposed public issue. The equity shares of the company are proposed to be listed on the BSE and NSE.

Earlier this month, Sebi has "kept in abeyance" the proposed Rs 4,500-crore initial share-sale of edible oil major Adani Wilmar Ltd (AWL) in "abeyance".