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Our Bureau

New Delhi , July 26

The Ahmedabad-based Consumer Education and Research Centre (CERC) has petitioned market regulator SEBI to postpone the initial public offering 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 crore, 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 the SEBI Chairman, Mr M. Damodaran, CERC has claimed, "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." In such a scenario, the investments of lakhs of investors in the proposed IPO would be either lost or diminished, CERC said.

HC clears hurdle

The Anil Dhirubhai Ambani Group-led consortium had earlier challenged the Centre's decision to award the modernisation contract of Delhi International Airport to a 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 the Supreme Court subsequently, the CERC said.

Though GMR, in its red herring prospectus, has mentioned that any adverse decision may have a significant effect on its business, CERC has claimed that it was possible that the small investor may miss out on this information.

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