Emaar MGF Land, a JV between one of the world`s foremost real estate companies, Emaar Properties PJSC of Dubai, and MGF Development of India, has withdrawn and postponed its initial public issue to an appropriate moment.
The company decided to take this step as an outcome of the prevailing adverse market feelings, fuelled by renewed signals of a US recession and global meltdown.
EmaarMGF decided to push back the issue regardless of receiving applications worth Rs 57.79 bn in the light of disappointing market dynamics. This decision has been taken regardless of the fact that the QIB and HNI portions were fully subscribed and the book was already filled to almost 85 percent. The retail portion had over 225,000 applicants representing significant appetite and demand for the issue.
Given the prevailing sentiments in the capital markets it was unclear how well the stock would trade post listing; it has been considered wiser decision to re-examine the markets only when the demand and feeling is stable and better providing greater value to the investor
