Emaar IPO yet undersubscribed; Wockhardt withdraws issue

07 February 2008

Mumbai: A volatile market has taken its toll on the initial public offers of realty major Emmar MGF Land and hospital chain Wockhardt. While Emmar IPO could muster subscription of only up to 0.83 times as of today, after two price revisions and an extended sale, Wockhardt has opted to withdraw its IPO and return money to investors.

Emaar IPO was subscribed 0.83 times as of today, as per the data available on NSE website, after the realty firm slashed its offer price for a second time and extended its offer by three days.

The revised offer price is between Rs530 to Rs630 a share and now it will close on February 11.

"This marginal revision in the price band is in conformity with the Securities and Exchange Board of India (SEBI) guidelines on extension of the bidding period," the company said in a release.
 
Emaar MGF, a joint venture between Dubai's Emaar Properties PJSC and Delhi-based MGF Developments Ltd, had opened its road show with a Rs610-690 price band.

The issue was meant to dilute nearly 10.40 per cent of the expanded equity of Rs985.93 crore.

At the lower band of Rs530 per share, the issue would translate into a market capitalisation of Rs52,000 crore for the company.