Friday, June 1, 2007

Mundra IPO on course: Bankers

The Rs 1,500-crore initial public offering by Mundra Port and Special Economic Zone (MPSEZ) is going ahead as planned, said bankers and top company officials, clearing apprehensions that the two-year ban on the seven entities promoted by Adanis from accessing the capital markets may jeopardise the IPO.

The Sebi order, issued on Monday, restrained seven Adani group entities Adani Agro, Adani Impex, Crown International, Shahi Property Developers, Adani Properties, Advance Exports and Intercontinental India from accessing the securities market for the company’s alleged involvement with the rogue trader Ketan Parekh in share price manipulation back in 1999.

Crown International holds a nominal stake in MPSEZ raising doubts that the company may not be able to hit the IPO market, but bankers and company officials said that this would not come in the way of the public issue.

A company spokesman said: “Prima facie, the restriction applies to seven entities only. Neither Adani Enterprises and its subsidiary nor MPSEZ are affected from pursuing their financial mobilisation programme.”

Read more in The Business Standard article.

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