The Hindu Business Line : SC clears Shopper's Stop IPO

THE Supreme Court has permitted Shopper's Stop Ltd to go ahead with its Rs 150-crore initial public offer (IPO) of 69,46,033 equity shares scheduled to open from Wednesday.

Acting on a public interest petition from North East Investors Association, the Shillong Bench of the Guwahati High Court had, on Tuesday restrained the company from proceeding with its IPO.

Taking on board a special leave petition from the company against the impugned order, a Bench comprising Mr Justice N. Santosh Hegde and Mr Justice S.H. Kapadia said, "In the peculiar facts and circumstances of the case, the interest of justice will be met only by stay of the impugned order." The Bench, after hearing the senior counsel, Mr R.F. Nariman, added that until further orders, no court or authority in India should pass any interim order on this issue. The Bench has issued notice to NEIA, Securities and Exchange Board of India and the Centre.

Mr Nariman submitted that the North East Investors Association filed a petition a day before the IPO was to open. He said the registered office of the company was in Mumbai, the permission for the IPO was granted in Mumbai on February 18. While so, the High Court without even issuing any notice had granted an ex-parte stay order against the IPO, he said, and pleaded for stay of the High Court order and to allow the IPO to go on as scheduled.

The company alleged that the so-called PIL before the High Court was wholly malafide to prejudice the company's efforts of inviting public offers for its shares. The petitioner said it apprehended that the entire litigation, which was being initiated at Shillong, was at the behest of Mr Gopal L. Raheja and had been filed to circumvent the caveats filed by the company in other parts of the country. It said that the company was operating a chain of 16 department stores in the country. It had deposited about Rs 30 crore on April 25 towards promoter's contribution as it was a mandatory requirement under law before the issue was opened.

It said that the High Court order had far reaching financial implications as it had jeopardised the business plans of the company. The High Court order had also affected the goodwill and reputation of the company amongst its investors, the petitioner said, and sought stay of the impugned order.

IPO opens today

Our Bureau reports: The Customer Care Associate, Managing Director and CEO of Shoppers' Stop, Mr B.S. Nagesh, told Business Line, "after the Supreme Court's order staying the order by the Guwahati High Court, SEBI has cleared the IPO of Shoppers' Stop Ltd to open on April 28 and close on May 4. There is no other change in the IPO schedule proposed earlier."

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