Emaar MGF issued an IPO in Feb 2008 in the price band of Rs 610 - 690 per share valuing the company $16bn (Rs 66,000 crore) at the higher end with a PE multiple of 256.44 times compared to 74.99 for larger rival DLF and 48.72 for Unitech at that time.
The prices were revised twice to settle at Rs 530 - 630 but this also meant an expensive valuation- PE of ~200. Finally, Emaar had to withdraw the IPO given the low subscription in the dangling Indian market facing a huge global meltdown.
According to its IPO prospectus, Bennett Coleman and Co. Ltd and New Delhi Television Ltd had invested Rs25 crore each, while IFCI Ltd had invested Rs50 crore in the pre-IPO phase at Rs 455 per share valuing the company at $10bn.
Recently, Emaar Group of Dubai decided to convert Rs922 crore invested through preference shares into equity at a conversion rate of Rs300 per share, which is less than half the price at which the company wanted to IPO. The conversion is benchmarked to Citigroup’s investment in the company in 2006, valuing the company at $6 billion.
Emaar MGF has recently announced that it will go for an IPO in 12-18 months. Its anybodys guess what the valuation of the company will be.
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Emaar MGF Land Ltd, one of India's leading real estate developer, announced the launch of ‘Boulder Hills Golf and Country Club', its signature master planned integrated world class Leisure and Residential Community in Hyderabad. The launch of this project with a capital outlay of US $ 1.4 billion (Rs 5,610 crores), is the first amongst a significant cache of EmaarMGF projects in South India. This launch marks the roll out of Emaar MGF‘s ambitious project plans spanning residential, commercial & retail, IT parks & SEZs, and hospitality sectors over the next few years at ten locations across South India. Boulder Hills is replete with an 18-hole championship golf course, luxury residences, large format retail facility, luxury and boutique hotels and an IT Park. The project will be constructed by Multiplex Construction India Pvt Ltd., an equal partnership joint venture construction company between Emaar MGF and Multiplex Ltd.For more view- http://realtydigest.blogspot.com/
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