Letters: A clarification

This refers to a news report "Promoter's firm to get bulk of Lavasa IPO proceeds" (July 8) and an editorial "Vanishing cash" (July 31). We wish to state that half of the proceeds from the initial public offering (IPO) will not go to Steiner India as the report mentions. Only about 33 per cent of the IPO proceeds will be paid to Steiner India Ltd, in a phased manner, provided it carries out construction on the basis of the contract it has signed with us. Further, our company's transaction with Steiner India is on an arm's-length basis after duly complying with the approvals and procedures for related-party transactions. Our company would have incurred these payments even otherwise in the course of construction at Lavasa city if the contract involved any third party. The information in the report was taken on a piecemeal basis, as per the convenience of the reporter from the Draft Red Herring Prospectus our company filed with Sebi, to portray distorted information about our company.

Your editorial has compared our company with two others whose facts and operational data we do not know. They are also not similarly placed as our company and in spite of that, you have benchmarked the governance of those companies with the governance of our company, which is misleading, unsubstantiated and baseless.

Rajesh Jethani Senior Manager (Legal) Lavasa Corporation Ltd, Mumbai
 

The Draft Red Herring Prospectus, referred to above, mentioned that about 47 per cent of the issue proceeds would be paid to Steiner India Limited, a group company and a member of Lavasa Corporation's promoter group.

Editor
 

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