Emmar MGF cuts the price band

Thebullishtrends: EMMAR MGF a leading real estate company will enter into capital market tomorrow has decided to cut its IPO price band to Rs.540-630 to attract more investors towards this issue. Earlier the company was fixed Rs.610-640 as a price band for its issue.
Market sources said that due to the poor market conditions the company decided to attract more investor it reduced the IPO price band to Rs.540-630 as "they want to enhance the IPO image in the market" one of the leading broker said.

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.

Emaar MGF is entering into the IPO market tomorrow the issue will open tomorrow and will close on 6th February'08. The company mobilises and to utilise Rs 2,560 crore of the proceeds towards part-payment of land acquisition. And also Rs 775 crore would go into development cost of a project in Gurgaon and Rs 1,450 crore in repayments of loan. Emmar MGF 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,