Congress demands white paper on Gujarat IPO

April 8th, 2010 - 3:25 am ICT by IANS  

Gandhinagar, April 7 (IANS) The Congress Wednesday demanded a white paper on the Gujarat State Petroleum Corporation’s forthcoming IPO.
Shaktisinh Gohil, leader of the opposition in the state assembly said: “How has the valuation of the GSPC dwindled from Rs.21,727 crore to Rs.18,240 crore in just three months?”

In a statement Wednesday evening Gohil said that according to the draft red herring prospectus filed by GSPC with SEBI, it is aiming to sell 44.80 crore shares for Rs.68 each to raise Rs.3,066 crore.

The government of Gujarat intends to divest 16.70 percent take 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, Gujarat Government has cheated State and Central institutions besides financial entities by offering share at Rs 81 which it now proposes at much cheaper rate of Rs.68. the Congress alleged.

“It would be in the larger interests of the Gujarat based industry and investors if the government comes clear on whom all it is trying to benefit by adopting double standards and indulging in such a crime,” he said.

“There is a sea of difference in valuation at Rs.68 and Rs.81 per GSPC share.”

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