Uncertainty in stock markets has taken its toll on the IPO market, with realty major Emaar MGF today becoming the second company in two days to withdraw its public offering due to poor response from investors.
Wockhardt Hospitals withdrew its initial public offer yesterday. The IPO of Emaar MGF, a joint venture between Dubai based Emaar Properties and India's MGF Development, was subscribed only 43 per cent as per the latest data available on the stock exchang es. The company, however, claimed that Qualified Institutional Buyers (QIB) and High Networth Individuals (HNI) portions were fully subscribed and the book was already close to 85 per cent.
"The company decided to take this step as a result of the prevailing adverse market sentiments, fuelled by renewed indications of a US recession and global meltdown," the company said in a statement.
Emaar MGF had floated an IPO of 10.25 crore equity shares to raise about Rs 6,450 crore at the upper band of Rs 530-630 a share of Rs 10 each. The decision has been taken after the subscription level fell to 43 per cent from 85 per cent in the morning, i ndicating that subscribers had started cancelling their applications. - PTI
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