Emaar MGF Land announced a second price cut for its initial public offer on Wednesday, 6 February 2008 and also extended the date of closing of the issue to Monday, 11 February 2008. The price band has now been revised from Rs.540 to Rs 630 per share to Rs 530 to Rs.630 per share. These changes were made due to poor response to the issue.

The Emaar MGF Land IPO, which was originally scheduled to close on Wednesday, 6 February 2008 was subscribed 0.75 times by that time. It received bids for 7.66 crore shares as against 10.25 crore shares on offer. The IPO had opened for subscription on 4 February 2008.

The qualified institutional buyers (QIBs) portion was subscribed 0.87 times, the non institutional investors portion by 0.98 times and the retail investors portion by 0.41 times, by Wednesday 6 February 2008

The company had earlier cut price band of the IPO citing volatile market conditions in India. The price band for the issue was initially pegged at Rs 610 to 690 per equity share.

Real estate major Emaar MGF Land is a joint venture between Emaar Properties PJSC of Dubai and MGF of India. Emaar group holds 41.9% stake in the JV while MGF holds 53.3% stake.

The proceeds of the IPO are earmarked for part payment towards the acquisition of land and land development rights and related approvals for its ongoing and planned projects; development and construction costs for project Palm Drive in Gurgaon; and repayment of loans; and general corporate purposes (GCP).

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