Emaar MGF Land

Abstract:
Emaar MGF Land is a real estate company, which excels in the real estate sector. Lately, the company had launched equity shares but had to withdraw them despite a good response from the investors. It was fathomed by the company that probably it was not the right time to enter the market, whereby the investors would only lose their money.
Merged in the year 2005, EMGF or Emaar MGF is a joint venture between MGF Development Ltd of India and Emaar Properties PJSC of Dubai. EmaarMGF Land Ltd., is real estate developer of repute.

They are mainly involved in the creating properties in:
Retail sector
Hospitality sector
Commercial sector
Residential sector

The company is also contemplating diversifying in areas related to infrastructure development, health care and education. Land acquisition, land identification, planning projects, designing projects, marketing as well as implementation are also taken care of by the company.

EmaarMGF Land Opted out of the IPO market despite sound response:
Recently, Emaar MGF Land launched an IPO. The market conditions, however did not support that and changed the course of the IPO (initial public offer) thereby forcing EmaarMGF Land to opt out of the market. The closing date of the equity shares was extended to February, 11th 2008. Another company, which shared the same fate of its IPO closure was Wockhardt Hospitals.
Reasons for withdrawal:
It is believed that there were two main factors, which led to the withdrawal. One was the threat of a re visit of recession in the United States of America. The second factors could be attributed to the fact that the prevailing market conditions in the domestic as well as global markets are not very supportive.
Details of the Issue:
To get proper response from the investors, the company on two instances revised the price band. The price band initially was Rs 610 to Rs 690. After two revisions, the price band was slated at Rs 530 to Rs 630. Earlier the closing date was 6th February, 2008 but the date was extended to 11th February, 2008. The company spokesperson assured the investors of a “revisit” after an year and a half. Despite receiving a good response from the investors, by observing the existing “market sentiments”, the company thought it would be best if they re visted after a certain time period.
Applications received:
The total number of applications received were valued at Rs 5,779.36 crore.

HNI or High Net Individual and QIB or Qualifying institutional buyers:
Under these two categories, all shares were subscribed.
There was almost full subscription of the book by 85%.
Applications from the retail buyers were about 225000.

Global Co ordinators And Book Running Lead Managers (GCBRLMs) inlcude:
Enam Securities Private Ltd
DSP Merrill Lynch

Book Running Lead Managers include:
ICICI Securities Ltd
J P Morgan India Private Ltd
Citigroup Global Markets India Private Ltd
Kotak Mahindra Capital Company Ltd
HSBC Securities And Capital Markets India Private Ltd.
Goldman Sachs India Securities private Ltd

Objectives of the IPO:
The company intended to raise approximately, Rs 6,500 crores for its various development projects underway.

 

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Last Updated on : 30th July 2013