Emaar MGF Land to raise up to $1.5 bn in India IPO

Published Tuesday, January 08, 2008

By Agencies

The Indian arm of Dubai's Emaar Properties will kick off marketing later this month for an initial public offering to raise up to $1.5 billion amid what is likely to be a busy equity-raising year for Indian firms.

Emaar MGF Land Ltd plans to launch a marketing roadshow on January 18, with a listing tentatively scheduled for February 27, a source familiar with the deal said.

It is selling 11.9 per cent of its enlarged share capital in the IPO, according to a term sheet, and will use proceeds for land and development rights, development and construction costs, repayment of loans and general corporate purposes.

The deal will closely follow the $3 billion IPO planned by utility Reliance Power Ltd, which is set to be open from January 15 to January 18 ahead of an early February listing in what would be India's largest IPO.

Another Indian company, construction and engineering firm Jaiprakash Associates Ltd plans to raise about $500 million in a sale of global depositary receipts (GDRs) to be listed in London, according to a term sheet obtained by Reuters on Tuesday.

Jaiprakash plans to kick off a marketing roadshow on January 17 ahead of pricing scheduled for January 29, a source familiar with the deal said. Citigroup and UBS are underwriting the offering.

Indian companies are expected to raise $14.2 billion in initial public offerings this year, according to Thomson financial, topping the record $8.26 billion raised in 2007.

Property development in India has flourished and land prices have jumped since the country eased rules on foreign investment in the construction industry in early 2005.

Shares in DLF, which raised $2.25 billion in an IPO last year, have more than doubled since their debut.

Emaar MGF Land will sell about 117.39 million new shares in a deal sponsored by Citigroup Enam Securities, Goldman Sachs, HSBC, JPMorgan, Kotak Mahindra Capital and Merrill Lynch, the term sheet said. (Reuters)

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