News & Views on Indian Real Estate

Monday, February 11, 2008

EmaarMGF withdraws IPO

Emaar MGF, the collaboration of Dubai based Emaar Properties and India based MGF Development Limited announced on the 8th February 2008 to withdraw the IPO just before a day of closing day .It was the second IPO withdrawal in just 24 hours that happened first time in India stock market. The Health care serve provider Wockhardt Hospitals had earlier withdrawn its IPO on Thursday .

“The company decided to take this step as a result of the prevailing adverse market sentiments, fuelled by renewed indications of a US recession and global meltdown.”

EmaarMGF, whose IPO opened Feb 1, had to cut the offer price twice following weak response from the investors.

However, EmaarMGF remains committed to executing its projects in hand and is well funded to ensure that this delayed IPO will not hamper its growth plans. The company expects to return to the market at a later date when sentiment and liquidity conditions are better

Some bankers and investors believe that these decisions of IPO withdrawal are taking place due to people becoming selective while investing .Do we expect the same trend being followed in the near future and having an adverse impact in the Indian Real Estate economy?