Emaar MGF IPO extended by 5 days to Feb 11
As per Sebi regulations, the company has to receive a minimum subscription of 90% of the issue and Emaar MGF IPO is subscribed only 0.74 times on the last day. This under subscription on the last day has forced Emaar MGF Land, a join venture between Emaar Properties PJSC of Dubai and MGF Development Limited of India, to extend its issue by five days with the permission from market regulator, Sebi. Now the issue will close on February 11 instead of February 6.
The company also revised its lower end of price band to Rs 530 from Rs 540, so the new price band is Rs 530-630 per share. This is the second time of revision in price band from the company, due to negative sentiment across the global markets, which impacted Indian markets as well. The first price band was Rs 610-690 which Emaar MGF reduced first price band to Rs 540-630. I am not sure even after revising the lower band, how much difference it will make, because while applying to the IPOs, most of them apply at Cut-off rates.
It will be very interesting to see the subscription of Emaar MGF IPO on last day, that is 11th Feb 2008 now. Let’s see if they can still make it 90% or not.
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[...] after extending the IPO date and reducing the IPO price, Emaar MGF could not get enough response from investors in [...]