Emaar MGF withdraws IPO

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one of the world`s leading real estate companies, Emaar Properties PJSC of Dubai, and MGF Development of India, has withdrawn and postponed its initial public issue to an appropriate time.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.Emaar MGF plans to consider other funding options like private placement, PE at SPV level. They will refund IPO money in the next 10-15 days.

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.