Realty major Emaar MGF said it has received the Securities and Exchange Board of India's (Sebi) approval to launch its Rs38.50 billion (Dh3.11bn) initial public offer (IPO).
Emirates Business on February 7 reported that the joint venture company was awaiting regulatory approval for its Indian IPO.
The company had filed draft red herring prospectus (DRHP) with the market regulator on September 29 last year. "We have received the final observations to our DRHP from the regulator. As per the new Sebi regulations, we have a one-year window to complete the IPO. The board of directors of the company are considering an opportune time to open our IPO," the company spokesperson said.
Emaar MGF, a joint venture between Emaar Properties and domestic firm MGF, commenced its operations in the country in 2005. As of August 31, 2009, the company has a land bank of 11,340 acres. It is developing 29 projects, including the Commonwealth Games Village.
Of the total proceeds from the issue, Emaar MGF will utilise over half of the fund to repay its debt. The company has a debt of Rs58.08bn as on August 31 and plans to utilise Rs19.72bn raised from IPO in part repayment.
The repayment will also include the debt of special purpose vehicle (SPV) created by the company for developing the Commonwealth Games Villages – Emaar MGF Construction.
Besides, it would pump in Rs8.20bn for redemption of certain redeemable preference shares. It would also invest Rs2.76bn in paying development and licence renewal charges.
Emaar MGF had launched its IPO in 2008 to raise about Rs70bn, but had to withdraw it due to poor market response.
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