New Delhi, Jan 23 (UNI) Global realty major Emaar MGF today said its forthcoming Rs 7,000 crore initial public offering (IPO) will be on track and hoped that the country's stock markets will continue to recover.
''The companies with long-term focus will hardly be effected from the temporary ups and downs of the market. We are diluting 10 per cent stake through IPO and expect to raise up to Rs 7,000 crore in the backdrop of the US Federal Reserve cutting the interest rates by 0.75 yesterday,'' company Executive Vice Chairman and Managing Director Shravan Gupta told reporters here.
The firm, a joint venture between Dubai-based Emaar Properties PJSC and MGF Development Ltd, will offer 10,25,70,623 equity shares of face value Rs 10 each at a price band of Rs 610 and Rs 690 per equity share.
The issue will open for subscription on February 1 and will close on February 6. It is proposed to be listed on the Bombay Stock Exchange Ltd (BSE) and the National Stock Exchange Ltd (NSE).
Mr Gupta said the Fed rate cut is a very postive step for the industry which will bring more liquidity into the country.
He said the proceeds will be used to fund the development and construction cost of Palm Drive residential project in Gurgaon, repayment of loans, and payment towards the acquisition of land and land development rights.
At least 60 per cent of the issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), out of which five per cent will be available for allocation on a proportionate basis to mutual funds only.
Further, not less than 10 per cent of the issue will be available for allocation on a proportionate basis to non-institutional bidders and not less than 30 per cent issue will be available for allocation on a proportionate basis to retail individual bidders.
The global co-ordinators and book running lead managers to the Issue are Enam Securities Private Ltd and DSP Merrill Lynch Ltd.
The book running lead managers are Citigroup Global Markets India Private Ltd, Goldman Sachs (India) Securities Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, JP Morgan India Private Ltd, Kotak Mahindra Capital Company Ltd and ICICI Securities Ltd.
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