Minister narrates how Gujarat’s GSPC IPO was ruined by phone call from Delhi(video)

Gujarat minister of state for Industry, Mining and Energy Shri Saurabh Patel today alleged that a phone call from Delhi(aka central government pressure) had asked the institutional investors to backtrack from GSPC IPO last year, due to which IPO plan was deferred.

The minister on the floor of assembly today said: “I didn’t want to say this, but let me reveal this also today. Ten or twelve days prior to IPO, its date was fixed. As the date was final, merchant bankers and others were called then, and all of them were confident. Either LIC, or other entities, they were ready with intention to invest crores. But just three days back they held an urgent meeting. Why? Because financial backing of mutual funds and government companies was lowered by 90%, and we were told that they had a phone call from Delhi because of which they were wishing not to go ahead. Such a big injustice to Gujarat? Though we didn’t want, we postponed the issue. The people of Gujarat are strenthful enough to generate Rs. 5000 crore, and we will do that.”

GSPC is the holding company of fully integrated GSPC Group, having presence in almost all the energy sectors including E&P, pipeline, city gas distribution, power and others. Gujarat State Petroleum Ltd — a listed company and the group’s midstream subsidiary — manages and owns the largest gas pipeline network in Gujarat.