Update on March 15, 2019: Embassy Office Parks REIT (India’s First REIT) allots Rs. 1743 cr (5.81 cr units) at Rs 300 per unit to anchor investors.
The initial public offering (IPO) of Embassy Office Parks REIT (Embassy REIT), the first ever by a Real Estate Investment Trust (REIT) in India, will open on March 18, 2019. Embassy REIT will issue units aggregating up to Rs 47,500 million. This Issue will constitute at least 10% of the issued and paid-up units on a post-issue basis, in accordance with Regulation 14(2A) of the REIT Regulations. The issue will close on March 20, 2019.
The units of the Embassy REIT are proposed to be listed on the National Stock Exchange of India and the Bombay Stock Exchange (BSE). The Embassy REIT has received in-principle approvals from the NSE and the BSE for listing of the units, pursuant to letters dated October 11, 2018 and October 9, 2018, respectively, the company said, in a release.
The net proceeds from the issue, according to the company, will be used for:
(i) Partial or full repayment or pre-payment of bank/ financial institution debt of certain asset special purpose vehicles (SPVs) and by the investment entity,
(ii) Payment of consideration for acquisition of the Embassy One Assets, currently held by Embassy One Developers Private Limited, and
(iii) General purposes.
The issue will include participation by strategic investors in accordance with the SEBI Guidelines. The issue is being made through the book building process and in compliance with the REIT Regulations and the SEBI Guidelines, wherein not more than 75% of the issue (excluding the strategic investor portion) shall be available for allocation on a proportionate basis to institutional investors, provided that the manager may, in consultation with the lead managers, allocate up to 60% of the institutional investor portion to anchor investors on a discretionary basis, in accordance with the REIT Regulations and the SEBI Guidelines.
Further, not less than 25% of the issue (excluding the strategic investor portion) shall be available for allocation on a proportionate basis to non-institutional investors, in accordance with the REIT Regulations and the SEBI Guidelines, subject to valid bids being received at or above the issue price
Bids can be made for a minimum lot of 800 units and in multiples of 400 units thereafter, by bidders other than the units subscribed for by anchor investors and strategic investors.
Axis Trustee Services Limited will be the trustee to the issue while Embassy Office Parks Management Services Private Limited will be the manager to the issue. Embassy Property Developments Private Limited and BRE/ Mauritius Investments will be the sponsors to the issue.