CERC asks Sebi to postpone GMR IPO

NEW DELHI: Ahmedabad-based Consumer Education and Research Centre (CERC) on Wednesday asked market regulator Sebi to postpone the initial public offer of GMR Infrastructure on the grounds that a case was pending before the Supreme Court on the modernisation contract of the Delhi Airport.

The case could have negative implications on the company's proposed IPO to raise Rs 928 cr, scheduled to open on July 31, about one-third of which would be invested in modernisation of Delhi Airport, the consumer rights forum said in a release here.

In a representation to Sebi chairman M Damodaran, CERC argued that if the Supreme Court annuls the contract of the Delhi International Airport a substantial part of the project, for which the IPO is being brought out, will be jeopardised, it said.

In such a scenario, the investment of lakhs of investors would be either lost or diminished, CERC said.

ADAG-led Reliance consortium had challenged the Union government's decision of awarding the modernisation contract of Delhi International Airport to GMR-led consortium in the Delhi High Court.

It had alleged that the award of the contract was illegal and arbitrary, and pleaded to revoke the contract. The Delhi High Court dismissed the challenge and the consortium moved to Supreme Court, CERC said.