Emaar MGF withdraws IPO, to reconsider at an appropriate time

New Delhi, Feb 8 (UNI) Adverse market conditions has claimed another casualty in the listing process with Emaar MGF Land Ltd today withdrawing and postponing its Initial public offer (IPO) to an appropriate time.

''The company decided to take this step as a result of the prevailing adverse market sentiments, fuelled by renewed indications of a US recession and global meltdown,'' said a company statement.

EmaarMGF has decided to postpone the issue despite receiving applications worth Rs 5,779.36 crores 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 per cent. The retail portion had over 225,000 applicants demonstrating significant appetite and demand for the issue,'' Emaar said.

The company said it will refund the IPO money in the next 10-15 days.

Given the prevailing sentiments in the capital markets it was unclear how well the stock will trade post listing; it has been considered wiser to revisit the markets only when the demand and sentiment is stable and better providing greater value to the investor.

EmaarMGF said it remains committed to executing its projects in hand and is well funded to ensure that this delayed IPO will not hamper its growth plans.

The company expects to return to the market at a later date when sentiment and liquidity conditions are better.

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