Emaar MGF withdraws IPO
Emaar MGF has withdrawn its IPO due to poor response.
The company today said the application money would be refunded in 10-15 days.
Emaar MGF would now look at private placement and private equity deals at the special purpose vehicle (SPV) level.
The IPO, which was initially expected to raise over Rs 7,000 crore in a price band of Rs 610-690 per share, was extended and the offer price cut twice to Rs 540-630 per share initially and finally to Rs 530-540 per share.
Wockhardt Hospitals had withdrawn its IPO yesterday due to poor response.
Following is the release issued by Emaar MGF today:
Emaar MGF Land Postpones IPO
* To consider IPO at an appropriate time
Mumbai, February 8, 2008: Emaar MGF Land Limited (Emaar MGF or the Company), a joint venture between one of the world’s leading real estate companies, Emaar Properties PJSC of Dubai, and MGF Development Limited of India, has withdrawn and postponed its Initial public issue to an appropriate time.
The company decided to take this step as a result of the prevailing adverse market sentiments, fuelled by renewed indications of a US recession and global meltdown.
Emaar MGF has decided to postpone the issue despite receiving applications worth Rs 5,779.36 crore in light of discouraging market dynamics. This decision has been taken despite the fact that the QIB and HNI portions were fully subscribed and the book was already filled to almost 85%. The retail portion had over 225000 applicants demonstrating significant appetite and demand for the issue.
Given the prevailing sentiments in the capital markets it was unclear how well the stock would trade post listing; it has been considered wiser to revisit the markets only when the demand and sentiment is stable and better providing greater value to the investor.
Emaar MGF remains committed to executing its projects in hand and is well funded to ensure that this delayed IPO will not hamper its growth plans. The company expects to return to the market at a later date when sentiment and liquidity conditions are better.
Emaar MGF Land Limited is one of the leading real estate developers in the country with a strong parentage and a diverse land bank spread across 26 cities across India. The company is committed to its mission of developing and delivering unique integrated lifestyle and work place environments and planned developments. The primary business is the development of properties in the residential, commercial, retail and hospitality sectors. In addition, it has also identified healthcare, education and infrastructure as business lines for future growth. Its operations span across various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution.
The Global Co-ordinators and Book Running Lead Managers (“GCBRLMs”) to the Issue are Enam Securities Private Limited and DSP Merrill Lynch Limited. The Book Running Lead Managers (“BRLMs”) are Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited and ICICI Securities Limited
