Poor response to Emmar MGF IPO
Mumbai: Emmar MGF's third largest IPO issue after Reliance Power and DLF that was to close Wednesday, has been extended by six days due to the poor response it has elicited. The move has ostensibly been compelled by volatility in markets resulting in poor investor response, analysts said. According to Bombay Stock Exchange (BSE) statistics, the IPO has been subscribed only by a negligible 0.74 percent. The UAE-based real estate conglomerate was also forced to lower its price band from 540-630 to 530-630. This was the second time within a week that the company has slashed its price band. When the much-hyped issue opened Feb 1, the company had reduced the price band from 610-690 to 540-630. Emaar MGF has offered 102.57 million shares, or 10.4 percent of the promoters' stake, through the IPO. The company is hoping to raise 70.78 billion through the share sale - the third largest issue in the country after Reliance Power and DLF. This is the second important IPO that has come under the onslaught of the volatility in the Indian markets. On Tuesday, the Wockhardt Hospitals Limited IPO was extended by two days and it also reduced its price band from 280 to 225.