The IPO of Brookfield India Real Estate Trust will open for subscription tomorrow, ie on 3 February. Prior to the launch of the public issue, the company has managed to raise Rs 1,710 crore from 39 anchor investors. Brookfield India REIT allotted 6,21,80,800 units to anchor investors at Rs 275 per unit. Let us tell you that Brookfield India will raise Rs 3800 crore from investors through its RIT IPO. This IPO will be open from 3 to 5 February.
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.
These foreign firms subscribed
Among the 39 anchor investors who subscribed to Brookfield India’s REIT IPO, Schroder Global Cities Real Estate, BNP Paribas Morgan Stanley DSP Adiko Holdings, Societe Generale (Societe Generale), Coronation Global Managed Fund, IA Opportunities and Moon Capital.
They were also allotted units
The veteran anchor investors who were allotted units in this REIT IPO include HDFC Trustee, SBI Life Insurance, Tata AIG, HDFC Life, Kotak Mahindra Trustee, Bajaj Holdings, Max Life, IIFL Special Opportunities Fund, Star Health and Avendus.
Highlights of this IPO
Let us tell you that 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 its multiple. That is, the minimum investment in this IPO is not Rs 15,000, but Rs 55,000. Because it is a REIT IPO, not a common IPO. Brookfield India has appointed Bank of America, Citigroup and Morgan Stanley as its lead managers for this IPO.
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.