The initial public offering of Nexus Select Trust, the leading real estate investment trust, has received a good response from investors, subscribing 48 percent on May 10, the second day of bidding.
The offer has garnered bids for 8.89 crore units against an offer size of 18.52 crore units, as per the subscription data available with the exchanges.
The qualified institutional buyers have bid for 16 percent shares of the allotted quota, while high networth individuals have subscribed 86 percent shares of the reserved portion.
Nexus Select Trust REIT plans to raise Rs 3,200 crore via public issue which comprises a fresh issuance of units worth Rs 1,400 crore and an offer for sale of Rs 1,800 crore by selling shareholders.
The real estate investment trust has already mobilised Rs 1,440 crore from anchor investors at the higher end of the price band.
The price band for the offer, which closes on May 11, has been fixed at Rs 95-100 per share.
Nexus Select Trust will utilise fresh issue proceeds for repaying debts, acquisition of stake and redemption of debt securities in certain asset SPVs, and general corporate purposes.
Its portfolio comprises 17 Grade A urban consumption centres spread across 14 cities which represented 30 percent of India’s total discretionary retail spending in FY20, with a total leasable area of 9.2 million square feet (msf), two complementary hotel assets (354 keys), and three office assets (1.3 msf) as of December 31, 2022.
The company has high-quality assets in major cities such as Delhi, Navi Mumbai, Bengaluru, Pune, Hyderabad, and Chennai, and has a strong presence in other prominent cities such as Chandigarh, Ahmedabad, and Bhubaneswar. Further, its portfolio has a tenant base of 1,044 domestic and international brands with 2,893 stores as of December 2022.
This is the fourth REIT IPO launched since March 2019 after Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust REIT.