Sebi has asked Kolte-Patil to give option to all investors to withdraw application from IPO, reports CNBC-TV18.
Kolte-Patil has said that all investors have an option to withdraw application, if they desire, by December 4. The Sebi direction follows litigation in relation to the project, ‘Whispering Meadows II’. Kolte-Patil was to use part of the proceed for ‘Whispering Meadows II.
Kolte-Patil IPO was priced at Rs 125-145 and the IPO closed on November 22.
Girish Lakhe, Group CFO, Kolte-Patil Developers said that they have not seen any QIB or HNI pull out yet. Lakhe added that Kolte-Patil has the first right of ownership of 14,400 square feet of land. The company will write letters to all subscribers to the issue clarifying the matter, stated Lakhe.
Excerpts from CNBC-TV18’s exclusive interview with Girish Lakhe:
Q: Would you confirm that you have received a Sebi notice to allow withdrawals from your IPO?
A: We have received the notice from Mr Shastri, who sent a notice to us and to Sebi. Sebi has written a letter to us that we should give clarification on the notice and publish that in the newspapers and we have already done that. It has also given us an opportunity to write letters to all the people, who have subscribed to this IPO.
So, we are doing that. Basically, we have already published the notice and given the answers to Mr Shastri’s allegations. That was already published in the newspaper on Sunday. In the next three-four days, we have to write letters to all the subscribers of the issue to clarify the same thing, which has been explained in the advertisement.
Q: Could you just walk through the status of the litigation, as it stands for now, with regards to the project Whispering Meadows II?
A: The litigation is that there was a dispute between us and the NTI Society, which is a Bangalore-based society. We were supposed to deliver some 35,000 square feet of area to them, out of which we had already delivered 20,500 square feet.
The balance area was supposed to be 14,400 square feet, which we were supposed to deliver in phase II of this project. It was linked to some obligation that NTI has to perform. So, only 14,400 square feet is to be delivered to them.
But in the meantime, the NTI society conveyed the same property to Shastri, which was earlier conveyed to us. Then, there was arbitration between NTI and Shastri and the Supreme Court asked NTI to pay Rs 3.5 crore to Shastri to settle this dispute, which NTI did not do and Rs 3.5 crore was deposited in Supreme Court by us.
Q: So the point of contention right now is the 14,400 square feet of land. Who has ownership of this?
A: We have the first right of development on that. We have the ownership on that and we have to deliver this 14,400 square feet in phase II to NTI.
Q: Your issue was heavily oversubscribed on the QIB and HNI side. Since you have come out with this notice on the National Stock Exchange, have you got any QIB or High Net Worth individuals who have invested in IPO, who have already pulled out, apart from retail investors or does that part of the subscription remains untouched?
A: So far, no QIB has pulled out and no HNI has pulled out. There are some enquiries coming from the retail investors and we are already replying to them.
Source: Moneycontrol.com
Tuesday, November 27, 2007
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