Emmar MGF to raise up to $1.79 bn

Realty major Emaar MGF on Monday said it will enter the capital market to mop up anywhere between $1.58 to 1.79 billion through issue of 10.25 crore (102.5 million) equity shares in the price band between Rs 610-690.

The issue, one of the largest in the country's capital market history after Reliance Power and DLF, will hit the market on February 1.

The issue proceeds would be utilised for part financing acquisition of land, construction of ongoing projects and pre-paying some debt.

"The Indian economy is growing and there is a shortage of housing units here. I guess it gives enough opportunity for all of us," Emmar Properties chairman Md Ali Alabbar said.

The Dubai-based realty major has 41.9 per cent stake in the joint venture, while MGF Development Ltd of India has 53.3 per cent stake in the company. Emmar MGF has recently diluted some stake to IFCI at the upper band of the issue price.

Emmar MGF, which has the vision of 'changing the face of India' has over 13,000 acres of land as of December 31.

"Out of the total land, we have already paid for 89 per cent of the land. As much as 47 per cent of the land belongs to the state capital region, 34.5 per cent in the National

Capital Region and the remaining in other places," company's executive vice chairman and managing director Shravan Gupta said.

The company, he said, has now presence in 26 Indian cities, which is set to be expanded to 40 cities once work on the projects starts.

"Our work involves into six areas - residential, commercial, retail, hospitality, education and healthcare. We want to make a difference in all these fields," Gupta said adding, 80 per cent of the total land is meant for using of residential projects development.

The issue, price for which would be determined through book building route, would remain open for subscription till February 6. Enam Securities, DSP Merill Lynch are the global co-ordinators and book running lead managers for the issue.