India’s third REIT IPO, Brookfield, lists at 2% premium over the issue price
- 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.
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.
AdvertisementWithin 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!
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 IPO||Qualified Institutional Buyer||Non-institutional Investor||Total|
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%.
AdvertisementAccording to Gupta, the investors who want to add REIT in their portfolio could hold for the long term.
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