Embassy Office Parks’ REIT Closes 5% Higher Than Issue Price On Debut
Embassy Office Park, the country’s first real estate investment trust, closed 4.7 percent higher than its issue price on stock market debut.
The unit listed at Rs 308 apiece, a premium of 2.7 percent to its issue price of Rs 300. The Rs 4,750-crore public issue, which opened for subscription during March 18-20, subscribed 2.57 times at the end of the three-day bidding process, according to data available on the website of the National Stock Exchange.
“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 in a prior statement. “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.”
Of the total mop-up of Rs 4,750 crore, one strategic investor Capital Group—through its two subsidiaries Capital World and Capital Research—bought Rs 876 crore worth of units at Rs 300 apiece.
Eighteen anchor or large institutional investors purchased units worth investors Rs 1,743 crore ahead of the IPO. These included long-term investors such as Capital Group, Fidelity, TT International, CI Funds and Damani Trust, among others.
The non-institutional order book of was subscribed 3.1 times the units wroth Rs 968 crore set aside.
The minimum lot size is 800 units implied an investment of at least Rs 2.4 lakh, ruling out the participation of retail investors—categorised as those investing up to Rs 2 lakh by the regulator.