India’s maiden REIT issue Embassy Office Parks IPO sails through on last day; key things to know

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Updated: Mar 20, 2019 3:41 PM

REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investment in this platform and earn income.

Embassy Office Parks’ public issue, the country’s first real estate investment trust (REIT) offering, has been subscribed 1.20 times so far on the final day of bidding Wednesday.

The REIT issue received bids for 8,54,49,600 units against the total issue size of 7,12,56,400 units, according to NSE data till 1430 hrs. The offering got subscribed 47 per cent till Tuesday. The offer is expected to raise up to Rs 4,750 crore.

According to a regulatory filing on Friday, Embassy Office Parks finalised allocation of 58,105,600 units to anchor investors at Rs 300 per unit, totalling Rs 1,743.16 crore. The issue is in a price band of Rs 299-300 per unit.

REIT is an investment tool that owns and operates rent-yielding real estate assets. It allows individual investors to make investment in this platform and earn income.

Embassy Office Parks is a joint venture of Blackstone and Embassy. It had in September last year filed the draft red herring prospectus (DRHP) with markets regulator Sebi to launch REIT, touted as Asia’s largest in terms of portfolio size of 33 million sq ft.

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Axis Capital, Credit Suisse Securities (India), Deutsche Equities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India), IIFL Holdings, JM Financial and Nomura Financial Advisory and Securities (India) are managing the public offer.

Besides, Morgan Stanley India Company, Kotak Mahindra Capital Company, JPMorgan India and DSP Merrill Lynch are the global coordinators and book running lead managers.

Embassy Office Parks, a leading player in commercial real estate, has put 33 million sq ft of office and hospitality assets under its proposed REIT comprising seven business parks and four city-centric buildings spread across Mumbai, Bengaluru, Pune and Noida.

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