Emaar MGF files DRHP with SEBI to raise Rs 3850 crore through its IPO

Real Estate Major Emaar MGF has filled its draft prospectus for the second time with market regulator SEBI to raise up to Rs 3,850 crore through its IPO.

It should be recalled that last year, Emaar MGF planned to raise over Rs 7,000 crore through an IPO, but later the company withdrew it due to poor market response.

A company official, who did not want to be identified, has informed that Emaar MGF has a debt of Rs 5,807.79 crore as on August 31 and plans to utilize Rs 1,972.1 crore raised from the public in part repayment.

Emaar MGF, a joint venture between Dubai-based Emaar Properties and domestic firm MGF, intends to utilize over half of IPO fund to repay its debt to strengthen its balance sheet.

Besides this, the company also proposes to utilize a part of the proceeds of the fresh issue to the extent of Rs 199.5 crore for funding Emaar MGF Construction, a special purpose vehicle (SPV) created by the company for developing the Commonwealth Games Villages.