Calcutta, Oct. 31: The Jessop rights issue got a breather from Calcutta High Court today when Justice Saumitra Sen stayed the order from the Appellate Authority for Industrial and Financial Reconstruction. The appellate authority had put a stop to an exemption received by the company from the Board for Industrial and Financial Reconstruction (BIFR) for the ongoing issue.

The Rs 50-crore rights issue will be closed tomorrow. Jessop promoter Pawan Ruia and the central government hold a 99 per cent stake in the company, while the remaining are with the public.

The Centre, which holds 27 per cent in Jessop, is likely to stay away from the issue. Ruia is expected to pick up the unsubscribed part.

Jessop had received an exemption from BIFR to carry out all formalities regarding the rights issue as prescribed by market regulator Securities and Exchange Board of India (Sebi).

However, the appellate authority stayed the exemption on October 21. Jessop moved against this to Calcutta High Court on October 22. The matter came up for hearing today.

“There is no uncertainty now over the rights issue of Jessop,” Pawan Ruia told The Telegraph.

The fund is expected to bolster its finance and make it a positive net worth company.

It had sought exemption from the BIFR on the ground that it could not meet the expenditure of a long-drawn process following the mandates of Sebi guidelines. The exemption was also hoped to reduce time.