Embassy Office Parks REIT, the country's first real estate investment trust (REIT), made a decent debut on Monday with shares rising as much as 8 per cent to Rs 324 apiece in the intra-day trade on Bombay Stock Exchange.
The stock closed at Rs 314.10, up 4.70 per cent, on the BSE after making a debut at Rs 300, the same as the issue price. The scrip touched an intraday high and low of Rs 324.50 and low of Rs 300, respectively.
On the National Stock Exchange, shares ended 4.89 per cent higher at Rs 314.67, over its issue price of Rs 300. During the day's trade, the units of Embassy Office Parks REIT hit an intraday high of Rs 324.80, after opening at Rs 308.
According to data available with exchange, over 29 lakh shares traded on NSE and 2.78 lakh shares changed hands on BSE during the trading session.
Embassy REIT's Rs 4,750 crore initial public offering (IPO), which opened for subscription during March 18-20, was subscribed 2.58 times. The price band of the offer has been fixed Rs 299 - Rs 300.
It was the first ever issue by a real estate investment trust.
A Real Estate Investment Trust (REIT) is an investment vehicle that allows people to invest in real estate and hold properties under it, and then lease it out to earn rental income. In India, REITs are only allowed for holding commercial properties.
The company intends to use IPO proceeds to partial or full repay or pre-pay bank's debt of certain asset SPVs; payment of consideration for the acquisition of the Embassy One Assets currently held by EODPL; and for general purposes.
Ahead of the IPO, REIT had allocated units worth Rs 876 crore to global investor Capital Group's funds as strategic investor, including New World Fund, SMALLCAP World Fund, and Global Small Capitalization Fund at Rs 300 apiece, as per document filed on NSE.
Another 18 anchor investors pumped in nearly Rs 1,743 crore of which 85 per cent were the long-only Investors like Fidelity, TT International, CI Funds and Damani Trust, among others while 4.4 per cent were hedge funds. Remaining 10.4 per cent of the subscribers were the domestic Investors.
Embassy Office Parks is the joint venture of Blackstone and realty firm Embassy Group. It owns and operates a 33 million square feet (msf) real estate portfolio as of March 31, 2018, comprising seven best-in-class office parks and four prime city-center office buildings spread across the major cities of the country including Bengaluru, Mumbai, Pune and the National Capital Region (NCR).