Mindspace Business Parks REIT IPO to open on July 27, price band at Rs 274-275/share

The initial public offering of Mindspace Business Parks REIT will open for subscription on July 27 and the price band has been fixed at Rs 274-275 per share.

The company is looking to raise up to Rs 4,500 crore from this issue, which consists of a fresh issue of units aggregating up to Rs 1,000 crore and offer for sale of units of Rs 3,500 crore.

The bidding for public issue by anchor investors will open for a day on July 24, i.e. a day before issue opening. Bids can be made for minimum 200 units and in multiples of 200 units thereafter.

Also Read: Mindspace REIT IPO affirms appetite for Indian commercial real estate among global investors

This is the second public issue in the REIT segment. Embassy Office Parks REIT was the first one to launch Rs 4,750 crore IPO in March 2019.

K Raheja Corp's Mindspace Business Parks REIT IPO has already received commitment worth Rs 1,125 crore from institutional investors including Singapore government's sovereign fund GIC, affiliates of Fidelity Group, Capital Group, Fullerton Group.

With this, the proposed REIT IPO has already received response for 25 percent of the issue size by strategic investors.

Total REIT units proposed to be subscribed by strategic investors will be 4.09 crore units and will be allotted to them at Rs 275 per piece, according to the offer document filed with the Securities & Board of India (SEBI).

Therefore, the net offer after excluding strategic investors' portion would be around 12.27 crore units or Rs 3,375 crore.

As per the document, 75 percent of the net offer (around 9.20 crore units or worth Rs 2,531 crore) is reserved for institutional investors and the rest 25 percent (around 3.07 crore units or worth Rs 844 crore) for non-institutional investors.

Morgan Stanley India Company, Axis Capital, DSP Merrill Lynch, Citigroup Capital Markets India, JM Financial, Kotak Mahindra Capital Company, CLSA India, Nomura Financial Advisory and Securities India, UBS Securities India, HDFC Bank, Ambit Capital, IDFC Securities and ICICI Securities are book running lead managers to the issue.