The Brookfield India Real Estate Trust, owned by Canadian company Brookfield Asset Management Inc, will launch its writ IPO on February 3, 2021. The company plans to raise Rs 3800 crore through this REIT IPO. This IPO will be open from 3 to 5 February. Brookfield India said on Thursday that the company has fixed the issue price at Rs 274-275 per share for this IPO. The company will use the money raised through this IPO to discharge its debt.
Let us tell you that Brookfield India REIT has a 99% stake in BPG Holdings Group Inc., a subsidiary of Canadian company Brookfield Inc. This Brookfield India IPO is the third REIT IPO to be launched in India. Earlier in 2020, the IPO of Mindspace Business Park REIT has arrived and in 2019 the IPO of Embassy Office Parks REIT has been launched in India. Brookfield India has appointed Bank of America, Citigroup and Morgan Stanley as its lead managers for this IPO.
What is a REIT IPO
Let us tell you that a REIT is a company that gives investors the opportunity to invest in units or portfolios of real estate assets. In this, the investors do not own any physical property but they get some percentage share in the earnings from that property. When these companies bring an IPO from the general public and other investors to raise funds for the development or construction of a real estate property, they are called REIT IPOs.
In this too, the company raises money from people and institutional investors just like a common IPO. REITs are similar to mutual funds. The funds raised through this IPO are used on real estate projects and the share of profits from that project goes to the investors who invest in it every year. Also, investors get the benefit of increasing the value of the property.
Special things about the company
Brookfield India REIT had a profit of Rs 15.12 crore in FY2020. Whereas its profit was Rs 15.75 crore a year earlier. At the same time, total revenue of the company increased by 5.54% to Rs 981.40 crore. The total outstanding debt on the company as on 31 March 2020 was Rs 6952.07 crore. Let us tell you that Brookfield manages assets worth $ 578 billion globally. At the same time, in India, the company manages 2.20 lakh square feet of office property in the area of infrastructure and real estate. Apart from this, the company has 7 Tall Roads (Roads) with a total length of over 600 km.