Mindspace business park REITs IPO 13 times full, plans to raise Rs 4,500 crore, QIB shows interest

Mindspace Business Park REITs initial public offering has received tremendous response. It closed 13 times the last day. The IPO, which opened on July 27, closed on Wednesday. It was targeted to raise Rs 4,500 crore from the market. REIT is owned by K. Near Raheja Group and Blackstone. This is the second IPO of any real estate investment trust (REIT) in India.

 

REIT  stands for Rear Estate Investment Trust. It invests in commercial real estate. Earnings are shared among investors as the real estate price rises. For this, the company distributes dividend and interest. REIT funds have to invest at least 80% in compiled and revenue generated projects. It distributes 90% of its cash flow to investors. Going by the history of returns, India's only writ Embassy Office Parks REIT has given 27.4 per cent returns since listing in March 2019.

 

However, the impact of the boom in the equity market is visible on the IPO and other issues. Earlier, the Rs 500-crore Rosary Biotech IPO received 79 times subscription last week. While Yes Bank's 15 thousand crores also got 95 percent subscription. All this has happened at a time when the corona is at its peak and the economy is fragmented.

 

The IPO price band was 274 to 275 rupees, according to exchange data, 10.65 times subscription was received for the share of institutional investors. While the subscription for other investors got 15.83 times. The price of this IPO was fixed at Rs 274 to 275 per share. Its investment bankers were Morgan Stanley, Axis Capital, Bank of America, UBS, Nomura, IDFC Securities, etc.

 

Foreign investors along with domestic investors also showed good interest in this IPO. Among the foreign and domestic institutional investors were Singapore State Investor GIC, Fidelity, Capital Group and others. According to analysts, the Mindspace REITs IPO has shown a fairly good response from investors. This segment is becoming popular now.

 

Mindspace is just the second IPO in the REIT sector. A year ago in April 2019, the first REITs IPO came in Embassy Office Park. Mindspace Business Park REITs has a portfolio of 29.5 million square feet. It has commercial properties in major cities. It has cities like Mumbai, Pune, Chennai, Hyderabad etc.