India’s third REIT IPO, Brookfield, lists at 2% premium over the issue price

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India’s third REIT IPO, Brookfield, lists at 2% premium over the issue price
BCCL
  • The Brookfield Real Estate Investment Trust (REIT) stock listed at ₹281.70, which is at a 2.43% premium to the set price band at ₹274-275 per share.
  • Brookfield REIT’s initial portfolio consists of four large campus-format office parks, located in Mumbai, Gurugram, Noida and Kolkata.
  • The company’s market value expanded to ₹8,272 crore after the listing.
It was a decent debut for the ₹3,800 crore initial public offering (IPO) of global investment firm Brookfield Real Estate Investment Trust (REIT) on the bourses today (February 16). The stock listed at ₹281.70, which is at a 2.43% premium to the set price band at ₹274-275 per share.

The company, headquartered in Gurugram, was the third trust in India to go for an initial public offering (IPO) — the other two being Embassy Office Parks REIT and Mindspace Business Parks REIT.

Brookfield REIT’s initial portfolio consists of four large campus-format office parks, located in Mumbai, Gurugram, Noida and Kolkata. And it has a list of marquee tenants — Barclays, Bank of America Continuum, RBS, Accenture, Tata Consultancy Services and Cognizant — that have leased the commercial space with 75% of gross contracted rentals.

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Within minutes after listing, Brookfield REIT's shares lost nearly 2.34% of their value and were trading at ₹275.11 apiece at 10:05 am in a robust market.

The company’s market value expanded to ₹8,272 crore after the listing.

The profitable listing was already on the cards!

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The IPO of the country's only 100% institutionally managed public, commercial real estate vehicle clocked in a great response from investors on the last day of subscription — the issue was subscribed nearly 8 times the offer value.

Brookfield REIT IPOQualified Institutional BuyerNon-institutional InvestorTotal
IPO Subscription4.78x11.52x7.94x

What to do with the stocks post listing?

The listing gains failed to meet the Street’s expectations. Yash Gupta, an equity research associate at Angel Broking, expected in a note the listing gains to be around 5%-15%.

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According to Gupta, the investors who want to add REIT in their portfolio could hold for the long term.

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