This IPO has just 2,330 shares to offer but single unit price is higher than a car!

PropShare Celestia- the third scheme of Property Share Investment Trust, India’s first registered small and medium real estate investment trust (SM REIT). The issue opens for subscription today, that is on Friday, April 10. The issue shall conclude after a five-day window on Thursday, April 16. It is eyeing to raise Rs 244.65 crore from this scheme.

Interestingly, the issue is entirely a fresh sale of 2,330 units and investors can apply for a single share or unit only. However, the price band has been fixed at Rs 10,00,000 to Rs 10,50,000 apiece. Each share of this issue costs more than select hatchback models like Hyundai i10, Maruti Suzuki Baleno, Tata Punch, Kia Sonet, Renault Triber to name a few.

Market experts have cited income-generating Grade-A commercial office assets, stable rental cash flows, long-term lease agreements and professionally managed SM REIT as key positives for the issue. However, they cite concentration risk due to single-asset exposure, rental income dependent on tenant occupancy and lease renewals and sensitivity to interest rates and commercial real estate cycles as key risks.

This is because SM REIT issues mandatorily have an issue price at least of Rs 10 lakh and investors can apply for the issue in multiples of one. The issue has seven identified floors in Venus Stratum, a Grade A+ mixed-use commercial building with a unique atrium located in Nehru Nagar, Ahmedabad.

PropShare Celestia’s operational framework focuses on efficient property management, tenant retention, and lease optimization to ensure consistent rental income and asset performance. It benefits from India’s growing SM REIT ecosystem regulated by SEBI, which enables structured ownership and governance of smaller commercial assets, said Ventura Securities.

"With a leased office property forming the core of its portfolio, the trust aims to generate stable cash flows supported by contractual rentals and escalation clauses. However, overall performance remains influenced by tenant concentration, lease renewals, occupancy levels, and broader commercial real estate market conditions," it said with a 'subscribe' rating.

The project spans across an area of 2,07,838 sq feet and includes three managed office and co-working operators—Smartworks Coworking Spaces, EFC (both publicly listed), and Paragraph Khajanchi Business Centre LLP, one of Ahmedabad’s leading coworking providers and Swedish publicly listed telecommunications multinational.

75 per cent of the issue is reserved for qualified institutional bidders (QIBs), while non-institutional bidders will have 25 per cent of shares allocated towards them. Ambit is the sole book running lead manager and Kfin Technologies is the registrar of the issue. Axis Trustee Services is the trustee for the issue, while PropShare Investment Manager is the investment manager for it.

PropShare Celestia offers a projected distribution yield of 8.4 per cent for FY27, 8.7 per cent for FY28 and 8.9 per cent for FY29. The projected distribution yield is based on the assumptions and estimates as deemed appropriate and reasonable by the investment manager at the date of the projections.

Property Share has an experienced team comprising 24 members having academic pedigree from leading IITs and IIMs with institutional investing experience across leading international and domestic real estate funds. The units are proposed to be listed on BSE Ltd.