SC gives Reliance Power IPO green signal

ANIL AMBANI'S DAY OUT

The Supreme Court passed a blanket order declaring that the Reliance Power Initial Public Offering (IPO) would go ahead despite any interim order passed by any court in the country.

A bench headed by Chief Justice K G Balakrishnan was hearing a petition moved by Reliance Power, promoted by the Anil Dhirubhai Ambani Group (ADAG), against the Jagrut Grahak Suraksha Mahila Mandal alleging that there was a "malafide and illegal campaign by certain interested persons to stop or delay the IPO to be launched on January 15".

There are cases pending in a Mumbai civil court and the Gujarat High Court against the company, which is setting up units to generate 28,000 Mw. The Rs 11,500-crore IPO will be the country's largest. The public issue has been cleared by the Securities and Exchange Board of India.

Today's order comes after the Supreme Court had stayed the proceedings in the Gujarat High Court two days ago, which was intended to stall the IPO. In today's petition, the company asked for the transfer of the Gujarat petition to the Bombay High Court.

The company in its petition said the court had come down heavily on similar efforts by vested interests against other IPOs, mentioning Morgan Stanley Mutual Fund and Raheja Corporation.

The petitioners argued that if other courts, authorities and tribunals were not restrained from passing any order on the IPO, the company would "suffer irreparable loss and injury and, in fact, national and public interest would be prejudicially affected".