Nexus Select Trust REIT IPO Subscribed 28% On First Day, Valued At Rs 3,200 Crore

The Nexus Select Trust's Initial Public Offering (IPO}, which is the first Real Estate Investment Trust (REIT) supported by rental-yielding retail real estate assets on Tuesday, received a 28% subscription on its first day.

The share sale, which is valued at Rs 3,200 crore, received bids for 500,490,000 units, which is less than the 1,760,010,000 units on offer. Blackstone sponsors the Real Estate Investment Trust.

The Non-Institutional Investors category was subscribed 42%, while the Qualified Institutional Buyers (QIBs) portion received a 17% subscription, according to an update.

Nexus Select Trust has successfully garnered Rs 1,440 crore from anchor investors on Monday. The offering comprises a fresh issue of units worth up to Rs 1,400 crore and an Offer For Sale (OFS) of up to Rs 1,800 crore.

The issue, which is scheduled to conclude on May 11, has a price band of Rs 95 per unit to Rs 100 per unit. Nexus Select Trust's portfolio consists of 17 operational shopping malls, spanning across 14 major cities, covering a total area of 9.8 million square feet, which includes the upscale Select City Walk in Delhi.

Nexus Select Trust owns two hotels with a total of 354 keys and office spaces in a mixed-use development. Following the IPO, Blackstone's shareholding in the trust will decrease from 60 percent to 43 percent, while Select City Walk's promoters' stake will decrease slightly from 25 percent to 24.3 percent.

There are currently three REITs listed on the stock exchanges in India, namely Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust, all of which are supported by leased office assets.

Blackstone has sponsored three REITs in India, beginning with Embassy Office Parks REIT and followed by Mindspace Business Parks REIT. BofA Securities India, Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), IIFL Securities, JM Financial, J P Morgan India, Kotak Mahindra Capital Company, Morgan Stanley India Company, and SBI Capital Markets are the managers to the offer.