Emaar MGF, one of the leading real estate developers in the country, said it was planning to launch its initial public offering (IPO) in the next 90 days. The company plans to raise Rs 3,500 crore through the IPO.
“The market is quite stable now and if this trend continues we will be launching our IPO in the next three months,” said Emaar MGF Executive Vice-Chairman and Managing Director Shravan Gupta.
The company received the approval of the Securities and Exchange Board of India (Sebi) for the IPO last month.
Commenting on Emaar’s status in the Dubai market, Emaar Properties Chairman Mohammed A Alabbar said: “The market in Dubai has become a bit stable but is still soft. We need to give another 12 months before the market can bounce back.”
Talking about India being one of the key markets for Emaar Properties, Alabbar said, “We feel that there is great opportunity for us to tap in India. Most of our upcoming projects concentrate on mid-level segment, as we feel that this is the right segment to target.”
Currently, Emaar MGF has 36 projects under construction in India and the company plans to earn Rs 12,000 crore from these projects in the next two years. Emaar MGF has debt of Rs 5,000 crore and the company plans to pay off Rs 2,000 crore by March 2011.
“We will pay Rs 2,000 crore by March 2011 by internal accruals, IPO proceeds and different lines of credit available,” said Gupta. The company’s current debt equity ratio is 1:1.
