The IPO of Brookfield India Real Estate Trust will launch on February 3, 2021. The company will raise Rs 3800 crore from investors through its RIT IPO. This IPO will be open from 3 to 5 February. Brookfield India has fixed the issue price for this REIT IPO at Rs 274-275 per share. At the same time, its lot size is 200 units. That is, investors will have to buy at least 200 units and after that they will be able to subscribe to this IPO in multiple. Let us tell you that the company will use the money raised through this IPO to discharge its debt.
Brookfield India has appointed Bank of America, Citigroup and Morgan Stanley as its lead managers for this IPO. This IPO of Brookfield India REIT, owned by Canadian company Brookfield Asset Management Inc, is the third REIT IPO to be launched in India by any real estate trust. 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. Let us tell you that Brookfield India REIT has a 99% stake in BPG Holdings Group Inc., a subsidiary of Brookfield Inc.
What is a REIT IPO?
A REIT is a company that allows investors to invest in units of real estate assets. In this, the investors do not own any physical property, but they get a share in the earnings from that property. In REIT IPO, the company raises money from people and institutional investors just like a normal IPO. 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. That is, when companies bring an IPO to raise funds for the development or construction of a real estate property, they are called REIT IPO.
The company manages assets worth Rs 5.44 lakh crore
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, the 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 India, the parent company of Brookfield India REIT, manages assets worth $ 578 billion or about Rs 5.44 lakh crore 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.