The initial public offering (IPO) of Brookfield India Real Estate Trust has been subscribed 77 percent on Thursday, the second day of the bidding. The Brookfield REIT offer has received bids for 5.88 crore units against the IPO size of 7.62 crore units. The issue will close on February 5.
Brookfield REIT is the country's only 100 percent institutionally managed public, commercial real estate vehicle. It is offering 14 million square feet of its commercial portfolio in the REIT.
The portion set aside for institutional investors has been subscribed 54 percent, and that of other investors including individuals witnessed a subscription of 106 percent.
The IPO will make Brookfield the third listed trust in India if it is successfully subscribed. It also marks the fifth IPO in the current calendar year after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company and Stove Kraft.
The company has raised Rs 1,710 crore from 39 anchor investors on Tuesday ahead of its IPO. Investors, other than anchor investor, can bid for a minimum of 200 units and in multiples of 200 units thereafter.
The REIT owns an initial portfolio of four large campus format office parks which are located in Mumbai, Gurugram, Noida and Kolkata. The company will utilise the proceeds of the issue for repayment or prepayment of the borrowings of the Asset SPVs and general corporate purposes.
“Post the utilisation of the net proceeds from the Offer, their total outstanding indebtedness in principal amount is expected to be less than 18.5 percent of their initial market value, providing them a significant financial flexibility to grow through economic cycles,” said domestic brokerage Sharekhan.
Brookfield REIT and its asset SPVs received a corporate credit rating of 'Provisional CCR AAA/Stable' from CRISIL.
(Edited by : Ajay Vaishnav)
First Published: IST