Emaar MGF Land, a joint venture between one of the world`s leading real estate companies, Emaar Properties PJSC of Dubai, and MGF Development of India, has withdrawn and postponed its initial public issue to an appropriate time.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.
EmaarMGF decided to postpone the issue despite receiving applications worth Rs 57.79 billion in the 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 225,000 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.
EmaarMGF 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.
EmaarMGF Land 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 spans across various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution.
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