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Mindspace Business Parks REIT share lists at 10% premium over issue price

The company, backed by the Blackstone Group and real estate developer K Raheja, saw a robust response to its Rs 4,500-crore initial public offering (IPO), with the issue getting subscribed nearly 13 times

twitter-logoBusinessToday.In | August 7, 2020 | Updated 15:16 IST
Mindspace Business Parks REIT share lists at 10% premium over issue price
The issue received bids for 8,778 lakh shares against the total issue size of 677 lakh shares

Mindspace Business Parks REIT shares listed on the bourses at Rs 302 on Friday, registering a 10.55% premium over its issue price of Rs 275.

The company, backed by the Blackstone Group and real estate developer K Raheja, saw a robust response to its Rs 4,500-crore initial public offering (IPO), with the issue getting subscribed nearly 13 times.

The issue received bids for 8,778 lakh shares against the total issue size of 677 lakh shares.

While the institutional investors' category witnessed a subscription of 10.61 times, non-institutional investors saw 15.77 times subscription. The public issue was open between July 27 to July 29, 2020.

Share of Mindspace Business Parks REIT opened at Rs 302 on NSE and touched a high of Rs 307.20 and a low of Rs 300.

On Bombay Stock Exchange (BSE), shares of Mindspace Business Parks REIT were trading at Rs 304 apiece on Friday's opening trade. Later the shares touched an intraday high of Rs 308.90 and low of Rs 299 on BSE.

Mindspace Business Parks REIT is only the second listed REIT in India exchanges, after Embassy Office Parks listing in April last year.

Expressing views on Mindspace Business Park REIT listing, Sharad Mittal, CEO, Motilal Oswal Real Estate Fund said,"The listing of the Mindspace REIT at ~11% premium shows that a balanced product like REIT is preferred by both institutional and retail investors. Despite the recent weakened sentiment around commercial real estate, a diversified portfolio of grade A assets with strong rental collections as demonstrated by the Mindspace REIT finds flavor with the retail investor. This listing will augur well for future investments in asset backed financial products and commercial real estate in India."

Yash Gupta, Equity Research Associate, Angel Broking said, "We had recommended a SUBSCRIBE to Mindspace REIT. Post listing as the stock is trading 10% above the issue price, traders and short term investors can look to book profits at current levels and lock in the listing gains."

From a long-term perspective, he added, "It is one of the good assets class to be invested for similar or better post-tax yield as compared to fixed Income with a good opportunity for capital appreciation. However, given the increasing trend of work from home, there are some concerns about the company and the commercial real estate segment in the short to medium term as absorption may remain low in the near future."

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