GNRE moves Calcutta High Court against Austral

GNRE moves Calcutta High Court against Austral
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First Published: Wed, Aug 13 2008. 07 28 PM IST
Updated: Wed, Aug 13 2008. 07 28 PM IST
Ahmedabad: Gujarat NRE Coke Ltd has moved the Calcutta High Court against Austral Coke and Projects Ltd, its directors, auditors and merchant bankers its initial public offer or IPO that hit the market last week, claiming Rs4761 crore damage.
A company release said it has taken serious objection to Austral Coke’s use of the Gujarat NRE Coke name in a ”distorted and misleading” way to sell its issue to public investors. According to it, Austral Coke has severely damaged its reputation, leading to a loss in its market capitalization. It has sought compensation for that.
Gujarat NRE Coke had last week said Austral Coke was misrepresenting facts during roadshows of its IPO. It accused Austral Coke of falsely claiming to be the original promoters of Gujarat NRE without mentioning that the owners were Rs.Rs.expelled’’ in 1997 for ”fraudulent” practice. Austral Coke hit back, threatening to file a defamation suit against the Gujarat NRE promoters in the Bombay High Court claiming Rs600 crore for making false statements when its IPO was on.
Gujarat NRE Coke claimed Austral had 70,000 tonne capacity against its claim of producing 3.75 lakh tonne of low-ash metallurgical coke.
The Rs119-142 crore Austral Coke issue opened on August 7 and closed on August 13.
Gujarat NRE Coke is owned by Girdhari Lal Jagatramka and his son A.K. Jagatramka and Austral Coke is promoted by Ratanlal Tamakhuwala and his son Rishi Raj Agarwal.
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First Published: Wed, Aug 13 2008. 07 28 PM IST