Emaar MGF Land IPO opens on Feb 01, price band Rs 610-690

Emaar MGF Land Limited (“Emaar MGF” or the “Company”), a joint venture between one of the world’s leading real estate companies, Emaar Properties PJSC of Dubai, and MGF Development Limited of India, is entering the capital market with an initial public offering (“IPO”) of 102,570,623 equity shares of face value Rs 10 each for cash at a price (“Equity Shares”) to be determined through a 100% book building issue.

The Bid/Issue will open for subscription on February 01, 2008, and will close on February 6, 2008. The Price Band has been fixed between Rs 610 and Rs 690 per Equity Share.

The Issue has been assigned an IPO grading of 4 out of a possible 5 by the rating agency, Credit Analysis and Research Limited (“CARE”), a credit rating agency registered with the Securities and Exchange Board of India (“SEBI”). The 4/5 CARE grading reflects 'Above Average’ fundamentals of the Company.

At least 60% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), out of which 5% shall be available for allocation on a proportionate basis to Mutual Funds only. Further, not less than 10% of the Issue shall be available for allocation on a proportionate basis to Non Institutional Bidders and not less than 30% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price.

Emaar MGF commenced its operations in India in February 2005 with the mission of being a real estate development company striving to develop and deliver unique integrated lifestyle and work place environments and planned developments. The primary business is the development of properties in the residential, commercial, retail and hospitality sectors. In addition, it has also identified healthcare, education and infrastructure as business lines for future growth. Its operations span across various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution.

Emaar MGF has access to its promoter's track record, especially the Dubai-based JV partner, Emaar Properties PJSC's rich experience in international real estate sector; and its demonstrated support in providing capital assistance; access to global management & systems; and business associations. The Company has a diversified business model with the requisite execution capability. It draws strength from the presence of an experienced management team; the presence of professionals on the Board; and large land reserves across the country with a high proportion of fully paid for land reserves.

As of December 31, 2007, Emaar MGF had land reserves (as defined and stated in the Red Herring Prospectus filed with the Registrar of Companies, Delhi and Haryana) across India admeasuring to approximately 13,024 acres out of which it has development plans for approximately 12,028 acres, which in turn, is expected to provide it with a proposed saleable area of approximately 566 million square feet. The Company estimates that its land reserves will provide it with a proposed saleable area of approximately 136.5 million square feet of plotted residential development (including built up villas); 318.8 million square feet of built up residential properties; 88.9 million square feet of commercial properties; 18.0 million square feet of retail properties; and 4,960 keys in hospitality properties as of December 31, 2007.

The Issue proceeds will be used for part payment towards the acquisition of land and land development rights and related approvals for its ongoing and planned projects. The Issue proceeds will also be used for the development and construction costs for project Palm Drive in Gurgaon. Palm Drive is a high quality residential development designed for “contemporary living in a green sanctuary setting” and is expected to include amenities such as a clubhouse, health club and parks. The development is within 20 kilometres of Delhi’s international airport.

For the six months ended September 30, 2007, (the first period in which turnover was recognised), the consolidated total income was Rs 5,017.4 million and the consolidated net profit (as restated) was Rs 1,298.3 million.

The equity shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).

The Global Co-ordinators and Book Running Lead Managers (“GCBRLMs”) to the Issue are Enam Securities Private Limited and DSP Merrill Lynch Limited. The Book Running Lead Managers (“BRLMs”) are Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, Kotak Mahindra Capital Company Limited and ICICI Securities Limited.

Sourced From: Adfactors Public Relations Pvt Ltd