SHARETIPSINFO >> EMAAR MGF - IPO : Report
We recommend one should apply for EMAAR MGF . It is goof for Long term investment.
Date – 1/2/2008
IPO Background : Emaar MGF Land Limited is a joint venture between MGF Development Limited of India and Emaar Properties PJSC of Dubai. As on 31 August ,2007 Emaar is operating in 16 countries , which makes it an internationally leading real estate company. Over the last 10 years MGF has established itself as one of the key company in retail real estate development in Northern India.
From February 2005 company is operating in India and is considered as a good brand in real estate sector. The primary business of the company is in development of properties in residential, commercial, retail and hospitality sector but now they are expanding in health care , education and infrastructure also.
The company has announced an initial public offering of 102,570,623 equity shares with a price band between Rs.540 and Rs.630 per equity share of Rs.10 each.
Why to Invest in it for Long term?
Because of the following characteristic one must opt for Long term Investment in it :-
- Fully paid land bank : Nearly 92% of the company’s land bank is fully paid for which will boost there future earning avoiding any major fluctuation in negative earning of the company.
- The promoters : Emaar is very big brand worldwide and its promoters are renowned for their expertise . It will give boost in creating customer base in domestic and International market.
- Valuations : At the upper band of Rs.630 Emaar, the price to NAV multiple will be around 0.85-0.92 which is reasonable and cheaper as compared to its rivals. One can expect Emaar to trade around Rs.715-750 on listing.
Risk Factor : Chances of losses in it is very less we rate it in Low risk segment . For best return Stay long in it for at least 6 months.
It’s a Must Apply IPO.
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