IPO PLANS not hit by Dubai World, says Emaar MGF | business | Hindustan Times
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IPO PLANS not hit by Dubai World, says Emaar MGF

business Updated: Nov 27, 2009 21:03 IST
HT Correspondent

The IPO plans of Emaar MGF, the joint venture between Dubai-based Emaar Properties and Indian developer MGF, are well on track, Emaar MGF said.

“The recently announced plans in respect of the debt of Dubai World has no impact either on the financial position of Emaar Properties or its operations or on its ability to meet any obligations,” said an official statement from Emaar MGF.

The statement added that the company has a strong balance sheet of $17 billion (Rs 79,296 crore). “The total debt obligation of Emaar Properties is $2 billion (Rs 9,329 crore), which is not significant considering the strong balance sheet,” the company spokesperson told Hindustan Times.

Emaar Properties has a 40 per cent stake in the Indian joint venture with MGF, and has invested close to $1 billion (Rs 4,664 crore) for the development of properties in India.

“This money has already come from Emaar Properties and no further investment is planned by Emaar Properties for its Indian joint venture,” explained the spokesperson.

Emaar MGF expects to raise Rs 3,850 crore through its IPO, which is expected in the last quarter of this financial year. This is the second attempt by Emaar MGF to hit the bourses; it had to abort its first attempt in 2008 due to the bad market conditions prevailing at that time.