Brookfield India REIT IPO Listing: Brookfield India Real Estate Trust IPO (REIT IPO) has had a sluggish listing in the stock market. The company had fixed the price band for the IPO at Rs 274-275 per share. On the BSE, this upper price band was listed at Rs 275.05 as compared to Rs 275. After the listing, the stock reached a price of Rs 280. At the same time, the issue was listed at Rs 281 on NSE. On Philharl BSE, the stock is trading at a price of Rs 274, weakening by Rs. Although the IPO received a good response from investors. It is an Indian company owned by Canadian asset management company Brookfield Asset Management Inc.
Brookfield India’s IPO was open from 3 to 5 February, during which it was subscribed 7.94 times. The IPO size was 7.62 crore equity shares, while bids were received for 60.5 crore equity shares. For institutional investors, the reserve share was 4.8 times, while for others, the reserve was 11.7 times. The company says that the funds received from the IPO will be used to reduce debt. The company aims to raise Rs 3800 crore through this REIT IPO.
Financial health of the company
Brookfield India REIT had a profit of 15.12 crores in the fiscal year 2020. Whereas the company had a loss a year ago. At the same time, the company’s total income was Rs 981 crore with 5.54 percent growth. The company had a total debt of Rs 6952 crore as of March 2020. Brookfield Manager’s Global is an asset of $ 57800 million. Brookfield India has appointed Bank of America, Citigroup and Morgan Stanley as its lead managers for the IPO.
What is a REIT IPO
REIT is a real estate investment trust that allows investors to invest in units or portfolios of real estate assets. In this, investors are not the owners of 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 like a common IPO.