 |
|||||||
 www.punescoop.com |
|
|
|||||
|
|||||||
|
||||||||||||||||
Will Emaar MGF Make It?By ugesh sarkar, Section Real Estate
Emaar MGF, an equal stake joint venture between Dubai-based Emaar Properties and Delhi-based MGF Developments, has obtained the Securities and Exchange Board of India's (SEBI) approval to launch its Rs 3,850-crore initial public offer, however, much lower than what it had planned to mop up in February 2008. The company is currently on track to open its IPO in the first quarter of 2010 fiscal, a senior company official, on condition of anonymity, told Property Pulse.
When contacted, he said, "We are presently planning to open an IPO in the first quarter of financial year 2010. The market sentiment has improved so far this year due to higher government budget spending and global recovery. The IPO climate also has improved a lot since the first quarter of 2008. Of course, we will make it this time." In February 2008, Emaar MGF's attempt to raise Rs 6,400 crore through an IPO notably failed after the issue got only 39 per cent subscription. Emaar MGF filed draft red herring prospectus (DRHP) with the market regulator on September 29, 2009. "We have received the final observations to our DRHP from the regulator. As per the new SEBI regulations we have a one year window to complete the IPO. The board of directors of the company are considering an opportune time to open our IPO," according to the official spokesperson of the company. Of the total proceeds from the issue, Emaar MGF will utilise over half of the fund to repay its debt. The company has a debt of Rs 5,807.79 crore as on August 31, 2009 and plans to utilise Rs 1,972.1 crore raised from IPO in part repayments. Source: Realty Plus By Vishnu Rageev R Will Emaar MGF make it? Click on "Full Story" For More...
Some of the lenders to the company include Unit Trust of India, HDFC, L&T Infrastructure Finance Company, Axis, LIC, Citibank, ABN Amro, HSBC and SBI. The repayment will also include the debt of special purpose vehicle (SPV) created by the company for developing the Commonwealth Games Villages -- Emaar MGF Construction. Besides, it would pump in Rs 820 crore for redemption of certain redeemable preference shares. It would also invest Rs 276.8 crore in paying development and license renewal charges. The remaining part of the proceeds is proposed for general corporate purposes, including acquisition and brand building exercise, the DHRP of the company said. Emaar MGF commenced its operations in the country in 2005. As of August 31, 2009, the company has a land bank of 11,340 acres. It is developing 29 projects, including the Commonwealth Games Village.
Will Emaar MGF Make It? | 0 comments (0 topical, 0 hidden)
|
