Mumbai: The joint venture company of Dubai’s largest real estate developer Emaar Properties PJSC and New Delhi-based MGF Development Ltd, Emaar MGF Land Pvt. Ltd, hopes to raise about Rs6,749 crore ($1.7 billion) in an initial sale of shares.
The company expects to get approval from the capital market regulator Securities and Exchange Board of India (Sebi) by January, said Mohamed A. Alabbar, chairman of Emaar Properties.
The developer filed share sale documents with Sebi in September to sell 117 million shares.
It has hired Citigroup Inc., Enam Financial Consultants Pvt. Ltd, Goldman Sachs Group Inc., HSBC Holdings Plc. and Capital Markets Ltd, JPMorgan Chase & Co., Kotak Mahindra Capital Co., and Merrill Lynch & Co. Inc. to help it sell the shares.
Emaar MGF joins real estate companies including DLF Ltd, India’s biggest developer, in selling shares to meet growing demand for homes, stores and offices in the world’s fastest growing economy after China.
DLF, Omaxe Ltd and Parsvnath Developers Ltd raised more than $3.7 billion since the beginning of the year, benefiting from demand for stocks as indices rose to records. The benchmark Sensex index has doubled over the past two years.
“The company has plans to construct master-planned developments, including residential, retail and hospitality properties, to provide fully integrated self-contained communities,” Emaar had said in a statement in September. Bloomberg