Emaar MGF: another issue bites the dust
Primary market turmoil claimed its second victim on Friday, with real estate firm Emaar MGF Land Ltd withdrawing its IPO. SVEC Constructions, whose IPO was to close on Friday, extended its scheduled closure date to February 13.
It received subscriptions for only 24% of its issue size of 40 lakh shares. The company has also reduced its issue size by lowering the price band from the earlier Rs 85-95 to Rs 80-90 a share.
Emaar MGF, a joint venture between Emaar Properties PJSC of Dubai and MGF Development Ltd of India, said in a statement that it decided to postpone the issue despite receiving applications worth Rs 5,779.36 crore in light of discouraging market dynamics. This decision has been taken despite the fact that the QIB and HNI portions were fully subscribed and the book was already filled to almost 85%. The retail portion had over 2,25,000 applicants, the statement added.
Wockhardt Hospitals had on Thursday decided to withdraw its IPO following poor response from investors.
Emaar MGF entered the market with an issue of 10.25 crore shares, with an initial price band of Rs 610-690 a share, which was reduced to Rs 540-630. At the upper end of the revised price band, the company would have raised over Rs 6,500 crore. Up until late Thursday evening, the issue garnered 82% subscription, but bidders dropped out following news of Wockhardt Hospitals withdrawing its IPO. By Friday evening, NSE data showed that Emaar MGF had received bids only for 39% of shares on offer.
