After the utilisation of the IPO proceeds, its total debt is expected to be less than 15% of market value, HDFC Securities said in a note on March 16.
The stock of Embassy Office Parks REIT ended more than 4% higher in debut trade on the NSE on Monday against its issue price of `300.
The stock was listed at `308, 2.67% above its issue price, before closing at `314. The firm’s shares saw an intra-day high of `324.8 and an intraday low of `308.
On the BSE, the shares closed at `314.10, a gain of 4.70% from the issue price. Intra-day, the stock touched a high of `324.50, a jump of 8.16%.
The initial public offering (IPO) of the country’s first real estate investment trust (REIT) was open from March 18-20 and was subscribed 2.58 times.
“The confidence of institutional investors in real estate still looks a bit laggard, and may be that was something which caused timid listing, whereas retail investors’ participation was great with 9.31 crore units — almost 12% share, pushing the oversubscription to 2.57.
“However, we feel with overall improved transparency in real estate on the back of strong policy changes and high quality assets, REITs should show better interest levels in future listings,” Paradigm Realty MD Parth Mehta said.
The Embassy Office Parks REIT IPO, backed by Blackstone Group and Bengaluru-based Embassy Property
Developments, aimed to raise `4,750 crore by issuing shares at `299-300 apiece. The object of the issue was partial or full repayment or prepayment of bank and financial institution debt of certain asset SPVs and by the investment entity and for acquisition of Embassy One Assets. After the utilisation of the IPO proceeds, its total debt is expected to be less than 15% of market value, HDFC Securities said in a note on March 16.