The Hindu : Business : Apex court clears Shoppers' Stop IPO

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Thursday, Apr 28, 2005

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Apex court clears Shoppers' Stop IPO

Legal Correspondent

No court or authority should pass any interim order on this issue

NEW DELHI: The Supreme Court today permitted Shoppers' Stop to go ahead with its Rs. 150-crore Initial Public Offer (IPO) of 69.46 lakh equity shares scheduled to open on Wednesday.

Acting on a public interest petition from the North East Investors Association (NEIA), the Shillong Bench of the Gauhati High Court on Tuesday had 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 Justice N. Santosh Hegde and 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 senior counsel, R. F. Nariman, further said until further orders, no court or authority in India should pass any interim order on this issue. The Bench issued notice to the NEIA, the Securities and Exchange Board of India and the Centre.

Mr. Nariman submitted that the NEIA 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.

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