By IANS
Mumbai : Emmar MGF’s third largest IPO issue after Reliance Power and DLF that was to close Wednesday, has been extended by six days due to the poor response it has elicited.
The move has ostensibly been compelled by volatility in markets resulting in poor investor response, analysts said.
According to Bombay Stock Exchange (BSE) statistics, the IPO has been subscribed only by a negligible 0.74 percent.
The UAE-based real estate conglomerate was also forced to lower its price band from Rs.540-630 to Rs.530-630.
This was the second time within a week that the company has slashed its price band.
When the much-hyped issue opened Feb 1, the company had reduced the price band from Rs.610-690 to Rs.540-630.
Emaar MGF has offered 102.57 million shares, or 10.4 percent of the promoters’ stake, through the IPO.
The company is hoping to raise Rs. 70.78 billion through the share sale – the third largest issue in the country after Reliance Power and DLF.
This is the second important IPO that has come under the onslaught of the volatility in the Indian markets.
On Tuesday, the Wockhardt Hospitals Limited IPO was extended by two days and it also reduced its price band from Rs.280 to Rs.225.