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Real estate firm Emaar MGF, which is entering the capital market on Friday with an Initial Public Offer, today reduced the price band to Rs 540-630 per share, a move aimed at attracting more investors to its issue.
The price band has been slashed to Rs 540-630 from the earlier Rs 610-690, an investment banking source said. The price band has been revised to enhance value for larger number of investors, considering the prevailing market conditions and developments in the domestic and global financial markets, the source added.
At the upper end of the band, the company would be able to raise about Rs 6,457 crore while at the lower end, it would mop up around Rs 5,535 crore.
Emaar MGF, which is a joint venture between Dubai-based Emaar Properties and India's MGF Development, is launching its maiden public issue of 10.25 crore equity shares of Rs 10 each to be determined through a 100 per cent book building.
The issue will open for subscription on February one and close on February six.
Emaar MGF proposes to utilise Rs 2,560 crore of the proceeds towards part-payment of land acquisition. Besides, Rs 775 crore would go into development cost of a project in Gurgaon and Rs 1,450 crore in repayments of loan.
The company is diluting 10.4 per cent stake of the fully diluted post issue equity share capital. In the Emmar MGF JV, Emaar has 41.9 per cent stake while MGF Development has 53.3 per cent share.
"Post-issue, MGF stake will come down to about 48 per cent while Emaar's share will be 39 per cent," company's Executive Vice-President and Managing Director Shravan Gupta had said. Source : economictimes.indiatimes.com |
