Realty major Emaar MGF today said it has received the Securities and Exchange Board of India's (Sebi) approval to launch its Rs 3,850-crore initial public offer (IPO).
The company had filed draft red herring prospectus (DRHP) with the market regulator on September 29 last year.
"We have received the final observations to our DRHP from the regulator. As per the new Sebi regulations we have a one year window to complete the IPO. The board of directors of the company are considering an opportune time to open our IPO," the company spokesperson said.
Emaar MGF, a joint venture between Dubai-based Emaar Properties and domestic firm MGF, commenced its operations in the country in 2005. As of August 31, 2009, the company has a land bank of 11,340 acres. It is developing 29 projects, including the Commonwealth Games Village.
Of the total proceeds from the issue, Emaar MGF will utilise over half of the fund to repay its debt. The company has a debt of Rs 5,807.79 crore as on August 31 and plans to utilise Rs 1,972.1 crore raised from IPO in part repayment.
The repayment will also include the debt of special purpose vehicle (SPV) created by the company for developing the Commonwealth Games Villages -- Emaar MGF Construction.
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Besides, it would pump in Rs 820 crore for redemption of certain redeemable preference shares. It would also invest Rs 276.8 crore in paying development and licence renewal charges.
Emaar MGF had launched its IPO in 2008 to raise about Rs 7,000 crore, but had to withdraw it due to poor market response.