Emaar MGF Land, which planned to raise up to $1.8 billion (Dh6.57 billion) in an initial public offering in India, has cut its offer price, becoming the second company to trim its issue because of market volatility.
A company official said the IPO price, initially 610 rupees to 690 rupees ($15.50 to $17.50; Dh56.58 to Dh63.88) per equity share, would be reduced to 540 rupees to 630 rupees ($13.7 to $16; Dh50 to Dh58.40), reducing the maximum amount it can raise to $1.64 billion.
Emaar MGF, an Indian joint venture of Dubai's Emaar Properties is scheduled to open the IPO for subscription on Friday.
Earlier, Indian healthcare services company Wockhardt Hospitals Ltd, which planned to raise up to 7.78 billion rupees ($197.5 million; Dh721 million), reduced its offer price and now aims to raise $165.6 million (Dh604 million) at the upper end of the price band.
Earlier this month, Reliance Power, a unit of India's Anil Dhirubhai Ambani Group, raised a record $3 billion (Dh11 billion) from its IPO but subsequent market turmoil has heightened investor anxiety.
The Bombay Stock Exchange's benchmark index has lost 13 per cent this year and is nearly 17 per cent below its record high of 21,206.77 hit on January 10.
Indian companies had a pipeline to raise up to $15.8 billion (Dh57.67 billion) from new listings this year, almost twice as much as last year's record $8.3 billion (Dh30.3 billion), according to Thomson Financial data.
Emaar MGF is being advised by Enam Securities Pvt Ltd and DSP Merrill Lynch Ltd, which are the global coordinators.
Citigroup Global Markets India, Kotak Mahindra Capital, HSBC Securities and Capital Markets (India), JPMorgan India, Goldman Sachs (India) Securities, and ICICI Securities are also advising on the issue. (Reuters)
Emaar MGF cuts India IPO price amid volatile market