Gandhinagar, April 08 Senior Congress leader Shaktisinh Gohil today demanded the stalling of state-run Gujarat Petroleum Corporation (GSPC) IPO, alleging it was an attempt to cheat the investors besides committing a corporate fraud of enormous magnitude.
Senior Congress leader Shaktisinh Gohil today demanded the stalling of state-run Gujarat Petroleum Corporation (GSPC) IPO, alleging it was an attempt to cheat the investors besides committing a corporate fraud of enormous magnitude.
In a release here, Mr Gohil, who is also Leader of the Opposition in the state Assembly, alleged that the Gujarat government-promoted GSPC has committed a blatant fraud and has cheated public sector units of the state as well as the Centre and financial institutions of the country besides betraying the trust of lakhs of people of this country who are shareholders of these listed companies.
”Therefore, in true spirit of entrepreneurship, social responsibility and corporate governance, the state government should stall the GSPC’s IPO,” he said.
He also demanded a white paper on the GSPC’s forthcoming IPO which, he alleged, ‘smacks of dirty designs and ulterior motives of the state government.’ He said according to the draft red herring prospectus filed by GSPC with market regulator Securities Exchange Board of India (SEBI), it aims to sell 44.80 crore shares for Rs 68 each to raise Rs 3,066 crore. The Gujarat government intends to divest 16.70 per cent stake for Rs 68 per share to the public, financial institutions and high net worth individuals.
However, the equity of the same GSPC was offered to some of the state and Centre’s ventures and financial institutions for Rs 81 per share in last week of December 2009. This way, state government has cheated both the state and Central institutions, besides financial entities, by offering share at Rs 81 which it now proposes at much cheaper rate of Rs 68.
It would be in the interest of the Gujarat based industry and investors at large if the government makes it clear as to whom it is trying to benefit by adopting double standards and indulging in such a white collar crime.
”Is it trying to squeeze the shareholders of listed entities like Gujarat Narmada Valley Fertilisers Company (GNFC), Gujarat Mineral Development Corporation (GMDC), Gujarat Alkalies and Chemicals Limited (GACL), and Gujarat State Fertilisers and Chemicals (GSFC) or the future investors of GSPC,” Mr Gohil asked.
—Agencies