Emaar MGF Launches IPO

Real estate firm Emaar MGF Land Limited is raising Rs 7000 crore from the market on 1st February. The company has firmed up an initial public offering of 102,570,623 equity shares of face value Rs 10 each at a price to be determined through a 100% book-building issue. The price band has been fixed between Rs 610 and Rs 690 per equity share. The issue has been assigned an IPO grading of 4 out of a possible 5 by rating agency CARE, reflecting ‘above average’ fundamentals of the company.

Md Ali Alabbar, Chairman, Emmar Properties, told the reporters “The Indian economy is growing and there is a shortage of housing units here. I guess it gives enough opportunity for all of us”. It is well-known that Emaar MGF is a joint venture between Emaar Properties PJSC of Dubai and MGF Development Limited of India. . The Dubai-based realty major has 41.9 per cent stake in the joint venture, while MGF Development Ltd of India has 53.3 per cent stake in the company. Emmar MGF has recently diluted some stake to IFCI at the upper band of the issue price.

Mr. Shravan Gupta, Executive Vice Chairman and Managing Director, said “Out of the total land, we have already paid for 89 per cent of the land. As much as 47 per cent of the land belongs to the state capital region, 34.5 per cent in the National Capital Region and the remaining in other places”. Further he added that the company has now presence in 26 Indian cities, which is set to be spread out to 40 cities once work on the projects starts.

On December 31, 2007, Emaar MGF had land reserves across India. It has 13024 acres of land out of which it has development plans for approximately 12,028 acres, which can provide it a saleable area of approximately 566 million square feet.

The company estimates that on December 31,2007 its land reserves will provide it with a proposed saleable area of approximately 136.5 million square feet of plotted residential development; 318.8 million square feet of built up residential properties; 88.9 million square feet of commercial properties; 18.0 million square feet of retail properties; and 4,960 keys in hospitality properties.

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  1. […] shopping and entertainment destination, developed by the foremost Dubai real estate developer Emaar Properties PJSC and located in the Dh73 billion mega-project Downtown Burj Dubai, is putting […]

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