Emaar MGF Land Ltd., the builder of India’s Commonwealth Games Village, reduced the size of a proposed initial public offering to 16 billion rupees ($356 million), two people with direct knowledge of the matter said. The IPO may begin in the first half of December, one of the people said, declining to be named before a public announcement. The New Delhi-based company filed a revised share-sale document to regulators today, the people said. Anupama Chopra, a spokeswoman for the company in New Delhi, confirmed the filing.
“The issue size has been lowered keeping in view the existing fund requirements,” Chopra said in an e-mailed response to questions. “The company has been able to reduce its debt significantly, buoyed by healthy sales from recent project launches and the improved real estate market.” The builder, a unit of Emaar Properties PJSC, was forced to abandon plans to raise as much as 70.8 billion rupees in February 2008 even after cutting the offer price as global equity markets slumped, the company said at the time.
The developer renewed fundraising plans in September last year. It secured approval to raise 38.5 billion rupees, according to a statement in March. It has since held off on an IPO in a year when the Bombay Stock Exchange’s Realty index has fallen 3.34 percent, compared with a 15 percent gain in the benchmark Sensex. Kotak Mahindra Capital Co., Deutsche Bank AG, UBS AG, Credit Suisse Group AG, HSBC Holdings Plc, ICICI Securities Ltd. and Royal Bank of Scotland Group Plc were hired to manage the sale, according to Emaar MGF’s September 2009 prospectus.
|
