Mumbai: The initial public offering (IPO) of Embassy Office Parks REIT, India’s first real estate investment trust (REIT), witnessed subscription close to the halfway mark on Tuesday, data from the stock exchanges showed.
The Embassy REIT, backed by private equity firm Blackstone Group LP and Bengaluru-based developer Embassy Property Developments Pvt. Ltd, plans to raise ₹4,750 crore in the IPO. The price band is set at ₹299-300 per unit.
As of 5pm Tuesday, institutional investors had subscribed to 59% of the shares alloted for them in the Embassy REIT IPO, while the portion reserved for high net worth individuals (HNIs) and retail investors was subscribed 32%.
The Embassy REIT IPO was subscribed 20% on Monday.
The three-day offering closes on 20 March.
On Friday, Embassy REIT allotted units worth ₹1,743 crore to anchor investors, according to filings with the stock exchanges.
The anchor book is a part of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscriptions open a day before the launch of an IPO and are seen as a gauge of institutional investor interest.
Funds of investors such as Fidelity International, Capital Group, TT International, and Schroders, among others, had bought the REIT’s units.
On the domestic side, the anchor book saw participation from Kotak Mahindra Life Insurance Co. Ltd and the family office of Radhakishan Damani, the promoter of Avenue Supermarts Ltd, which runs D-Mart supermarkets.
Embassy REIT’s portfolio comprises about 33 million sq.ft of office space across seven office parks and four prime city-centre office buildings as on 31 December.
It includes two completed and two under-construction hotels, totalling 1,096 rooms, food courts, and employee transportation and childcare facilities. The REIT’s portfolio has an occupancy rate of 95% and more than 160 blue-chip tenants. Office properties that are part of the REIT offering include the Express Towers at Nariman Point in South Mumbai and First International Finance Centre at the Bandra-Kurla Complex.