Mumbai: Controlled by West Asia’s biggest real estate developer by market value, the New Delhi-headquartered Emaar MGF Land Ltd is seeking about Rs7,077 crore in an initial public offering (IPO) to buy land and develop projects.
The IPO will run from 1 to 6 February and offer 102.6 million shares at between Rs610 and Rs690 apiece, a company statement said on Monday.
Emaar MGF, a joint venture of Dubai-based Emaar Properties PJSC and MGF Development Ltd of India, is developing homes, offices, hotels and special economic zones besides building the Commonwealth Games village in New Delhi. It has access to 13,024 acres of land and will use the IPO proceeds to acquire land and development rights, pay for development and construction and repay loans.
Reliance Power Ltd attracted Rs1.09 trillion worth of bids for its IPO last week as a record economic expansion lured overseas investors to Indian shares. Still, DLF Ltd, the nation’s biggest developer by market value, has slumped 20% in five days, outpacing the benchmark index’s 12% drop, leading the biggest fall in stocks since May 2006. It had raised Rs9,625 crore in 2007.
“Emaar would get enough demand to close the issue, but if one expects something like Reliance Power, they would be disappointed,” said Arun Kejriwal, director at research firm KRIS. “There’s enough money in the system to see the issue through, although the markets are off their peak.”
Emaar hired Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc., JPMorgan Chase & Co., Merrill Lynch & Co., Enam Financial Consultants Ltd and Kotak Mahindra Capital Co.
Reuters contributed to this story.