Brookfield India Real Estate Trust IPO subscribed 77% on Day 2 of bidding

The initial public offering (IPO) of Brookfield India Real Estate Investment Trust (REIT) was subscribed 77 per cent on Thursday, the second day of subscription.

It received bids for 5,88,18,600 units against the 7,62,78,200 on offer, according to an update on the NSE. Institutional investors category was subscribed 53 per cent, while other investors portion 1.06 times. Brookfield India hit the capital market with its REIT public issue on Wednesday to raise up to Rs 3,800 crore.

Investment firm Brookfield India’s REIT on Tuesday raised Rs 1,710 crore from anchor investors.

The IPO has a price band of Rs 274-275 per share, and closes on February 5.

Brookfield REIT, the country’s only 100 per cent institutionally managed public commercial real estate vehicle, is issuing units aggregating up to Rs 3,800 crore.

The net proceeds from the public issue will be utilised for partial or full pre-payment or scheduled repayment of the existing debt of asset special purpose vehicles.

The units are proposed to be listed on the BSE and the NSE. 

Brookfield REIT will be the third listed trust in India if it is successfully subscribed. 

The first one Embassy Office Parks REIT, backed by Blackstone and Embassy group, got listed in April 2019 after raising a sum of Rs 4,750 crore.

Mindspace Business Parks REIT, owned by K Raheja and Blackstone, was listed in August last year and had raised Rs 4,500 crore.

REIT is aimed at attracting investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation.

The global coordinators and book running lead managers to the offer are Morgan Stanley India Company, BofA Securities India, Citigroup Global Markets, HSBC Securities and Capital Markets.

Besides, Ambit Private Limited, Axis Capital, IIFL Securities, JM Financial, JP Morgan India, Kotak Mahindra Capital Company and SBI Capital Markets are the book running lead managers to the offer.