Wednesday 6 February 2008

Emaar MGF Land IPO Flops....

Lackluster response from investors to initial public offering (IPO) of 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, forced the company to extend closing date to February 11, supposed to close today. The company also lowered floor price to Rs 530 as against Rs 540. Now the revised offer price is between Rs 530 to Rs 630 a share. IPO received only 60% subscription till 4.00 pm today.

The issue has been assigned an IPO grading of 4 out of a possible 5 by the rating agency, Credit Analysis and Research (CARE), which reflects `Above Average` fundamentals of the company. The equity shares are proposed to be listed on Bombay Stock Exchange of India (BSE) and National Stock Exchange (NSE).

Emaar MGF commenced its operations in India in February 2005 with the mission of being a real estate development company striving to develop and deliver 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 span across various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution.