Emaar MGF Land calls off IPO as subscription falls to 43 per cent

Mumbai: Close on the heels of Wockhardt Hospitals shelving its initial public offer, Emaar MGF Land, the Indian joint venture of Dubai's Emaar Properties, today cancelled its on-going initial public offer.

Wockhardt Hospitals withdrew its initial public offer yesterday.

Emmar was forced to call off the issue after the subscription level fell to 43 per cent from 85 per cent in the morning, indicating that subscribers had started cancelling their applications.

Emaar MGF had floated an IPO of 10.25 crore equity shares to raise about Rs6,450 crore at the upper band of Rs530-630 a share for the Rs10 face value shares.

Emaar had cut its price band twice and extended its IPO by three days to February 11 after a weak response to the issue in a volatile market.

"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," Emmar MGF Land said in a statement.