The Hindu Business Line : Market woes: Emaar MGF cuts price band ahead of IPO

New Delhi, Jan. 31 Stung by the prevailing choppy market conditions, real estate major Emaar MGF Land, which had earlier announced plans to raise up to Rs 7,072 crore through a public offer, today decided to cut the offer price.

The price band for the issue, initially pegged at Rs 610 to 690 per equity share, has been reduced to Rs 540 to Rs 630 a share. This means that the company can raise up to Rs 6,457 crore at the higher end of the asking price.

enhanced value

A company spokesperson said that the move follows the volatile market conditions in India and globally. “Also, through this, we aim to give an enhanced value to our investors,” he said, adding that the IPO was on schedule and slated to open for subscription on Friday.

The public issue comprises 10.25 crore equity shares of face value of Rs 10 each. The issue would constitute 10.40 per cent of the fully diluted post-issue share capital of the company, which is a joint venture between Emaar Properties PJSC of Dubai and MGF of India. The proceeds of the IPO are earmarked for part payment towards the acquisition of land and land development rights and related approvals for its ongoing and planned projects; development and construction costs for project Palm Drive in Gurgaon; and repayment of loans; and general corporate purposes (GCP). It is learnt that the re-fixing of the price band may result in some re-allocation in the GCP.

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