Business | Property
Emaar MGF cuts offer price of Indian IPO
Emaar MGF Land, which planned to raise up to $1.8 billion in an initial public offering in India, has cut its offer price, becoming the second company to trim its issue because of market volatility.
- Reuters
- Published: 00:52 February 1, 2008
Mumbai: Emaar MGF Land, which planned to raise up to $1.8 billion in an initial public offering in India, has cut its offer price, becoming the second company to trim its issue because of market volatility.
A company official said the IPO price, initially Rs610 to Rs690 ($15.50 to $17.50) per equity share, would be reduced to Rs540 to Rs630 ($13.7 to $16), reducing the maximum amount it can raise to Rs1.64 billion.
Emaar MGF, an Indian joint venture of Dubai's Emaar Properties, is scheduled to open the IPO for subscription today.
Last month, Reliance Power, a unit of India's Anil Dhirubhai Ambani Group, raised a record $3 billion from its IPO but subsequent market turmoil has heightened investor anxiety.
The Bombay Stock Exchange's benchmark index has lost 13 per cent this year and is nearly 17 per cent below its record high of 21,206.77 hit on January 10.
Indian companies had a pipeline to raise up to $15.8 billion from new listings this year, almost twice as much as last year's record $8.3 billion, according to Thomson Financial data.
Advisers
Emaar MGF is being advised by Enam Securities Pvt Ltd and DSP Merrill Lynch Ltd, which are the global coordinators.
Citigroup Global Markets India, Kotak Mahindra Capital, HSBC Securities and Capital Markets (India), JPMorgan India, Goldman Sachs (India) Securities and ICICI Securities are also advising on the issue.
Wockhardt prunes band
An Indian firm has scaled down its initial public offering that opened yesterday, citing market conditions a day before a $1.8 billion issue by the Indian venture of Dubai's Emaar Properties.
Healthcare services company Wockhardt Hospitals Ltd, whichplanned to raise up to Rs7.78 billion ($197.5 million), has reduced its offer price and now aims to raise $165.6 million at the upper end of the price band.
"Wockhardt Hospitals Ltd... has, in light of current market conditions, revised the price band to Rs225-Rs260 per equity share," the company said in a brief statement late on Wednesday.
Company officials declined further comment and lead managers Citigroup and Kotak Investment Banking were not immediately available for comment.
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