Business News/ Markets / Ipo/  Nexus Select Trust REIT IPO gets fully subscribed. Latest GMP, apply or not?

Nexus Select Trust REIT IPO: The initial public offer of India's first retail REIT opened for subscription on 9th May 2023 and it will remain available for subscription till 11th May 2023 i.e. today. As per the Nexus Select Trust REIT IPO subscription status, by 12:22 PM on day 3 of bidding, the public offer has been subscribed 1.70 times whereas QIB portion has been subscribed 1.39 times and other categories have been subscribed 2.08 times. According to market observers, shares of Nexus Select Trust REIT are available at a premium of 4 in grey market today.

Nexus Select Trust IPO GMP today

As per the market observers, Nexus Select Trust IPO grey market premium (GMP) today is 4, which is s 0.50 higher from its Wednesday close of 3.5 per share GMP. Market experts believe that continuous rise in stock market's key benchmark indices are the reason for grey market remaining positive on this India's first retail REIT IPO but the dull response by investors to the public issue may improve on the final day of subscription.

Nexus Select Trust IPO subscription status

By 12:22 PM on day 3 of bidding, this Blackstone group-backed company's public offer has been subscribed 1.70 times whereas QIB portion has been subscribed 1.39 times and other categories have been subscribed 2.08 times.

Nexus Select Trust IPO: Apply or not?

Giving 'subscribe' tag to the Nexus Select Trust IPO, Choice Broking said, "Based on the fair asset value of Rs. 25,444cr, the calculated net asset value per unit is Rs. 120.9, which is 20.9% higher than the ceiling price of the issue. At higher price band (i.e. Rs. 100), the calculated pre-tax yield on the investment is around 8% (based on FY24E NDCF). However, as guided by the management, with quarterly 100% distribution of NDCF, compounded pre-tax yield is around 8.2%, which seems to be reasonable considering the early deflationary trend in the economy. Thus we assign a “SUBSCRIBE" rating for the issue."

ICICI Direct has also given 'subscribe' tag to the IPO citing, "Nexus Select is a quasi-play on consumption through its high-quality retail assets. At the upper band of | 100/unit (the market cap of | 15150 crore), the issue is at Price/NAV of 0.78x (December, 2022 NAV at | 127.7/unit). It is offering pre-tax yield of ~8% in FY24, at the upper price band. We assign SUBSCRIBE rating on the back of a) healthy yield potential, b) organic growth opportunities on rent escalation/repricing/releasing and tenant sales and c) potential inorganic growth through assets addition."

Apart from these brokerages, Aditya Birla, BP Equities, Geojit Securities, Jainam Broking, Marwadi Shares and Finance and Mehta Equities have also given 'subscribe' tag to this India's first retail REIT company's IPO, which has a backing of Blackstone group.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 11 May 2023, 12:26 PM IST
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