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Embassy Office Parks REIT IPO Oversubscribed On Last Day Of Bidding

Embassy Office Parks REIT IPO subscribed 2.58 times on the final day of bidding.

A woman walks up a flight of stairs at a co-working space in Singapore. (Photographer: Wei Leng Tay/Bloomberg)
A woman walks up a flight of stairs at a co-working space in Singapore. (Photographer: Wei Leng Tay/Bloomberg)

The initial public offering of Embassy Office Parks Retail Estate Investment Trust fully subscribed in the final day of the issue, led by the demand from retail investors.

India’s first REIT offering received bids for 18.3 crore units against the total issue size of 7.1 crore, a subscription of 2.58 times, according to data available on the website of the National Stock Exchange. The portion reserved for retail investors subscribed 3.15 times and institutional investors 2.15 times, the data showed.

Embassy Office Parks REIT had allocated 5.81 crore units worth Rs 1,743 crore to anchor or large institutional investors ahead of its maiden offering. It aimed to raise up to Rs 4,750 crore through the IPO to monetise its assets and reduce debt. The issue was in a price band of Rs 299-300 apiece.

“The oversubscription of the REIT is a very encouraging sign for the real estate sector, especially for the commercial segment,”Shishir Baijal, chairman and managing director at Knight Frank India, said. “This positive response will help build confidence among global investors and attract them to consider India along with its global peers such as Singapore and Hong Kong,” he said in a media statement.

Agreed Parth Mehta, managing director at Paradigm Realty. “This shall attract institutional and other investors to other realty companies to use this route of fundraising, creating a new capital market space for real estate.”

This comes at a time the Nifty Realty Index gained 5.45 percent in the last three sessions, compared with the benchmark Nifty 50 Index’s 0.82 percent rise. Shares of Prestige Estate Projects Ltd. rose as much as 18 percent and Godrej Properties Ltd. gained 17 percent during the period, according to Bloomberg data. Stock prices of Indiabulls Real Estate Ltd., Brigade Enterprises Ltd., Sobha Ltd. and Oberoi Realty Ltd., too, rose between 2 percent and 11 percent. The 10-stock gauge was also the best performer on the Nifty since Monday.

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