India’s only institutionally managed REIT, Brookfield India REIT IPO worth Rs 3,800 crores will be the fifth IPO of the year. The two days bidding window will remain open from February 3 to 5, 2021. Investors planning to subscribe for the offer find the details regarding it below.
- Brookfield India REIT is sponsored by an affiliate, Brookfield Asset Management (BAM), a part of the Canadian asset manager Brookfield Group
- Real Estate Trust or REIT are a special type of business organisation, and Brookfield India REIT is the only third REIT to list in the Indian bourses, after Embassy REIT and Mindspace REIT
- The initial public offering proposes to launch the shares in the price band of Rs 274-275 per shares to fetch Rs 3,8000 crores from the market
- Retail individual investors need to bid for a minimum of 200 shares amounting to a minimum investment of Rs 55,000 at the upper price band
- Bank of America, Citigroup Inc, and Morgan Stanley are appointed the book-running managers of the offer and Link Intime India Private Ltd. is the registrar
- The shares will debut in both BSE and NSE tentatively on February 17 after finalisation of basis of allotment on February 11, 2021
Once we have learned the details regarding Brookfield India REIT IPO, let’s look at the company’s financials, which will help us decide if it is a good investment option.
In 2020, the company reported a profit of Rs 15.12 crores against a loss of Rs 15.75 crores the year before, clocking a 5.54 percent increase in its income to Rs 981.40 crore. As in 2020, the REIT has 14.0 msf office space in its product portfolio, with 10.3 msf completed area, 0.1 msf under construction, and 3.7 msf in future development.
The REIT has four completed office campuses in Mumbai, Noida, Gurugram, and Kolkata with 92 percent occupancy and multinational clients like Barclays, Bank of America Continuum, RBS, TCS, Cognizant, and Accenture.
Should You Subscribe For The Offer?
There is some doubt in the market regarding the performance of commercial office space with the rise in work from home culture. However, the asset management company assured that there is no data to suggest that the work from home culture will dampen the demand for commercial office spaces in India. So far, the two REITs registered in the exchanges, Embassy and Mindspace have generated attractive returns for investors.
Brookfield India REIT IPO launch indicates the issuer’s confidence in the long-term success of the commercial office segment; confirms India’s ability to attract global institutional capital to the Indian real estate space.
REIT shares can help in creating an alternative source of income for investors. Hence, Brookfield India REIT IPO will attract investors with a long-term plan and moderate risk-return expectation.