Introduction Blackstone-backed Nexus Select Trust REIT’s Rs 3,200 crore initial public offering (IPO) will open for subscription on May 9, comprising both a fresh issue of units and an offer for sale (OFS). Here are the details related to Nexus Select Trust IPO Date, Price Band, GMP, Market Lot and should you invest or not? The REIT is India’s first listed rent-yielding retail REIT and is home to the country’s largest mall platform.
Nexus Select Trust IPO Details & Open Date
The IPO will be open for subscription from May 9 to May 11. Anchor investors’ subscription will open on May 8, and the finalization of the basis of allotment will be on May 16. Refunds will be initiated on May 17, and the stock will list on exchanges on May 19. The proposed public issue comprises a total offering of Rs 3,200 crore, which includes the issuance of new shares worth up to Rs 1,400 crore and an offer for sale (OFS) of up to Rs 1,800 crore.
Usage of Proceeds
The REIT plans to utilize the proceeds in the following ways:
- Repayment and redemption of specific financial liabilities associated with the Asset SPVs and the investment entity worth Rs 250 crore.
- The purchase of 30% equity interest in NMMCPL, which (also known as Nexus Indore Central) from Olive Commercial Company Ltd.
- Acquisition of a 100 percent stake in WRPL and redemption of debt securities issued by WRPL to certain Sponsor Group entities.
- Use of Rs 1,050 crore for acquisition of stake and redemption of debt securities in certain Asset SPVs.
REIT Portfolio Nexus Select Trust REIT boasts of 17 malls across 14 cities, including Delhi, Navi Mumbai, Bengaluru, Chandigarh, and Ahmedabad. In addition to malls, the trust comprises three offices and two hotels. In the fiscal year 2020, the company’s portfolio accounted for 30% of India’s total non-essential retail spending, and its average population compound annual growth rate (CAGR) from fiscal years 2011 to 2021 was 226 basis points higher than the national average. As of December 31, 2022, there are a total of 1,044 local and global brands that have rented space in the trust, operating 2,893 stores in the property.
Investor Allocation
The public issue is designed to allocate a maximum of 75% to institutional investors, while non-institutional investors will have access to 25% of the shares. The manager holds the discretion to allot as much as 60% of the institutional investor section to anchor investors. In the case of Real Estate Investment Trust (REIT) IPOs, non-institutional investors refer to those who purchase units worth up to Rs 5 lakh in the trust.
The investment banks selected for the upcoming initial public offering are Morgan Stanley, JP Morgan, Kotak Mahindra Capital, Axis Capital, and BoA ML. The pricing range for the IPO has not been finalized yet.
Conclusion: The Blackstone-backed Nexus Select Trust REIT’s IPO is set to open on May 9, offering a fresh issue of units and an OFS. With India’s first listed rent-yielding retail real estate assets, the trust’s portfolio boasts of 17 malls across 14 cities, making it India’s largest mall platform. The usage of proceeds from the IPO includes repayment of specific financial liabilities, acquisition of stake in Nexus Indore Central, acquisition of a 100 percent stake in WRPL, and redemption of debt securities. The IPO will be open for subscription from May 9 to May 11.