By IANS
New Delhi : EmaarMGF Land Ltd, a joint venture between Dubai’s Emaar Properties and India’s MGF Developments, Friday announced that it had withdrawn and postponed its initial public offering (IPO) to a later date.
The company did not mention when it would consider floating its shares again.
“Emaar MGF Land Limited has withdrawn and postponed its initial public issue to an appropriate time,” the company said in a communiqué.
“The company decided to take this step as a result of the prevailing adverse market sentiments, fuelled by renewed indications of a US recession and global meltdown,” it said.
EmaarMGF, whose IPO opened Feb 1, had to cut the offer price twice following weak response from the investors.
The price band, which was originally set at Rs.610-690 a share, was first reduced to Rs.540-630. Earlier this week, the lower end was further reduced to Rs.530 a share.
Through the IPO, the real-estate firm planned to raise $1.64 billion, down from the earlier projection of $1.8 billion.
“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,” the statement said.
“EmaarMGF remains committed to executing its projects in hand and is well funded to ensure that this delayed IPO will not hamper its growth plans. The company expects to return to the market at a later date when sentiment and liquidity conditions are better,” it added.
The IPO had received applications worth Rs.57.79 billion, while its retail portion got over 22,5000 applicants.