Global investment firm Blackstone-sponsored Nexus Select Trust on Wednesday fixed the price band for its initial public offering (IPO) at Rs 95-100 per share.
The country’s first REIT (Real Estate Investment Trust) IPO will open for subscription on May 9 and close on May 11. This will be the third REIT sponsored by Blackstone. According to the offer document, the total size of the public issue is Rs 3,200 crore, which includes fresh issue of units worth up to Rs 1,400 crore and offer for sale (OFS) of up to Rs 1,800 crore. “The company’s net debt is Rs 3,600 crore. The funds raised through the capital will be utilised to pay Rs 1,050 crore towards debt, RS 27 crore for acquisitions of 27 per cent stake in Treasure Island and the rest for corporate expenses,” Nexus Select Mall CFO Rajesh Deo said.
The company’s total income for the first nine months of 2022-23 stood at Rs 1,498.35 crore and “we are projecting our net income to grow by 17 per cent in 2025-26”, he stated. “Nexus Select Trust is India’s largest retail platform and is well-positioned to capitalise on India’s unique consumption tailwinds. We are excited to be at the forefront of India’s retail journey,” Nexus Select Mall Management Chief Executive Officer Dalip Sehgal told reporters. Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities, covering a 9.8 million square feet area.
The book running lead managers to the offer include BofA Securities India, Axis Capital Limited, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), IIFL Securities, JM Financial, JP Morgan India, Kotak Mahindra Capital Company, Morgan Stanley India Company and SBI Capital Markets. REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enables the participation of retail investors.
At present, there are three listed REITs — Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust — on Indian stock exchanges, but all of these are leased office assets.
