The initial public offering (IPO) of real estate developer Emaar MGF will open on February 1.
Asked whether the company is considering a delay in launching its IPO or lowering the price band due to volatility in the stock markets, Shravan Gupta, executive vice chairman and managing director, Emaar MGF Land, said: "Based on the response we have got from the road show and advice from merchant bankers, we believe this is a reasonably good time to go for an IPO."
The company is offering 102.6 million shares, equivalent to 10.4% of its fully diluted post-issue equity share capital, in a price band of Rs 610-690 per share. The issue is expected to mop up between Rs 6,258-7,079 crore.
Gupta said that post-issue, Dubai-based Emaar’s stake in the company will stand at 39% - down from 42%. Delhi-based MGF’s stake will stand at 48% as against the current holding of 53%.
The company is also planning to launch a real estate investment trust (REIT) in Singapore. "We should be in a position to do our first real estate investment trust within the next 18-24 months," Gupta said.
REITs are essentially entities that purchase, own and manage real estate properties. Indian real estate firms like DLF and Unitech are also planning to launch such trusts in Singapore.
Sources said Emaar MGF is planning to spin off its property developments to the REIT even as it embarks on a programme to make it one of the biggest real estate developers in the country.
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