Mumbai/New Delhi, Feb. 8 Having digested many large IPOs in the recent past, the market seems to have little appetite for any more.
Close on the heels of Wockhardt Hospitals withdrawing its IPO yesterday for lack of adequate response, Emaar MGF Land on Thursday followed suit, citing adverse market conditions.
Stock exchange data showed the Emaar MGF IPO was subscribed 0.39 times. “This decision to withdraw would help us in the long run,” said Mr Shravan Gupta, Executive Vice-Chairman and Managing Director, Emaar MGF Land.
“Rather than going ahead with an IPO at this stage with an uncertain post-listing scenario, we do not want investors to lose their money in the short term because of the prevailing market conditions.”
Revisit in 12-18 months
On the possible timeframe for revisiting the market, he said: “The timing will purely be a function of the market sentiments. We do not want any frothiness or instability in the market. The outside limit would be 12-18 months.”
Emaar MGF is a joint venture between Dubai-based Emaar Properties and MGF Development Ltd.
The company wanted to raise about Rs 6,500 crore, on the initial price band of Rs 610-690. This was twice revised to Rs 530-Rs 630 and the closing date extended to February 11 from 6.
Another company issuing an IPO, SVEC Constructions, today lowered its price band to Rs 80-90 from Rs 85-95. The closing date was also extended to February 13 from February 8.
Source : www.thehindubusinessline.com
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