SC clears Shoppers' Stop float

The Supreme Court has cleared the decks for the opening of retail firm Shoppers' Stop's initial public offering (IPO) by staying the order of the Shillong Bench of the Guwahati High Court which had passed an injunction against it.

The issue which is expected to raise about Rs 150 crore would open tomorrow and close on May 4. It was originally scheduled to open today.

The Supreme Court has asserted that till it decided the matter, no other court or forum shall pass any interim order pertaining to the IPO.

In a surprise move, a little-known group of investors called North East Investors Association moved a public interest petition in the high court a day before the opening of the public offer.

The single judge of the Shillong bench, without hearing the company, in an ex-parte injunction, directed Sebi not to open the public issue.

"We came to know about the court's decision late in the evening yesterday and hadn't even received a copy of the notice. But with the Supreme Court's stay order, the issue would open tomorrow morning," said BS Nagesh, CEO, Shoppers' Stop.

The company came to know of the injunction only on Tuesday evening from Sebi and it rushed to the Supreme Court. Its lawyers mentioned the matter before a bench headed by Justice Santosh Hegde who stayed the high court order.

In the appeal, the company has blamed one of the warring brothers for the whole "malafide" episode. In one of the documents filed before the Supreme Court, it is alleged that the two brothers, Gopal Raheja and Chandru Raheja had deep differences between them.

The company stated that at one stage, Gopal had threatened Chandru that in case a public offering was announced, he would somehow make sure that it did not see the light of the day.

The company had filed caveats in several high courts apprehending opposition by Gopal, but the Shillong bench was left out. It was exactly that bench which passed the adverse order yesterday.

The company, which runs a chain of 16 stores, alleged that the Shillong court was deliberately chosen to harass it as it was difficult to reach there in so short a time.