The initial public offer (IPO) of Embassy Office Parks REIT got fully subscribed on Wednesday.
The Rs 4,750 crore issue, which was opened for subscription on Monday, was subscribed 1.2 times till 2 pm on Wednesday, NSE data showed. Total bids received for the offer stood at 8,49,76,000 against total issue size of 7,12,56,400 units.
The quota for institutional investors got subscribed 1.43 times, NSE and BSE data showed. Other Investors category saw a subscription of 1.05 times at the time of reporting.
The price band of the offer has been fixed at Rs 299 - Rs 300. Minimum lot size for the offer has been set at 800 units and in multiple of 400 units, thereafter.
The company on Friday allotted units worth Rs 1,743 crore to anchor investors. The allotment was made at Rs 300 per unit.
Embassy Office Parks, the joint venture firm of Blackstone and Embassy, had in September last year filed the draft red herring prospectus (DRHP) with the market regulator Sebi to launch REIT, touted as the Asia's largest in terms of portfolio size of 33 million sq ft.
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. Sebi had notified REIT's regulations in 2014, allowing setting up and listing of such trusts, which are very popular in some advanced markets.
Arvind Nandan, Executive Director-Research, Knight Frank India, says, "REIT is finally making a debut in the Indian real estate after a long wait. This is a good development. Investment grade real estate is tough for a retail investor to get into. Apart from capital intensive nature of real estate investment, it is a long, technical and arduous process of due-diligence which rules out retail participation."
