After pulling out its initial public offer (IPO) due to poor investor response almost 18 months earlier, Delhi-based property developer Emaar MGF is re-looking at entering the primary markets with a public issue of shares soon, said investment banking sources.
The company is holding a board meeting on Friday to decide on fund raising, including a fresh IPO, sources said. “They have revived their plans but it is early days to talk about quantum of fund raising and dilution of equity,’’ said a banker close to the development.
When asked, a company spokesperson said: “We are mulling various fund-raising initiatives. However, we cannot comment on any specific plans.’’
Emaar has hired various bankers such as Kotak, UBS and Deutsche Bank, among others, for the proposed issue.
Emaar MGF’s withdrawn IPO would have been the second largest in real estate after DLF’s in February last year. It decided to withdraw the IPO after subscriptions fell from 83 per cent to 43 per cent of the shares offered, despite reducing the price band twice and pushing back the closing date by five days.
But interest in the primary markets seems to be reviving, thanks to improvement in stock markets and overall economic conditions. According to estimates, IPOs worth Rs 40,000 crore are expected to hit the markets in the next six months. At least 14 real estate companies are waiting to tap markets with IPOs and qualified institutional placements in the next six months.
Property developers such as Godrej Properties and Lodha Developers are also planning to tap capital markets in the next three-four months to raise funds for their ventures. Godrej is planning a Rs 500 crore one, while Lodha is planning a Rs 2,500 crore IPO in the coming months, sources said.
