BackNexus Select Trust REIT IPO:Issue subscribed 28% on Day 1; Non Institutional Investors steal the show; check details
Nexus Select Trust IPO: The issue that opened for subscription on Tuesday, May 9, and closes on Thursday, May 11. For the proposed IPO, the company has set the price range at ₹95 to ₹100 per equity share.
PremiumBlackstone's Nexus Select Trust REIT Ltd initial public offer (IPO) was subscribed 28% on Day 1, as per Axis Capital.
According to Axis Capital data at upper price band, the non-QIB portion (NII, HNIs, retail and corporate) was subscribed 42%, and Qualified Institutional Buyers (QIB) portion was subscribed 17%.
The company has received bids for 5 crore units against 17.6 crore units on offer, according to data from Axis Capital.
The QIBs' portion received bids for 1.64 crore units against 9.6 crore units on offer for this segment.
The non-institutional investors' (NII) portion received bids for 3.37 crore units against 8.0 crore units on offer for this segment.
The issue that opened for subscription on Tuesday, May 9, and closes on Thursday, May 11. For the proposed IPO, the company has set the price range at ₹95 to ₹100 per equity share.
The company raised nearly ₹1,440 crore on Monday through its anchor book, which a total of 16 institutional investors completely subscribed to.
According to a circular posted on the BSE website on Monday, among the anchor investors who have received units are HDFC Mutual Fund (MF), SBI MF, HDFC Life Insurance, SBI Life Insurance, Prusik, Morgan Stanley Asia (Singapore) Pte, and Tata Investment Corporation.
On Tuesday, May 16, the allocation's basis will be finalised. On Friday, May 19, the stock will begin trading on domestic exchanges.
The IPO consists of a fresh issue for ₹1,400 crore and an offer for sale (OFS) for up to ₹1,800 crore. The size had been suggested to raise ₹4,000 crore, however it has been reduced down. At the upper price range of 100, the IPO is worth ₹3,200 crore.
Nexus Select IPO: 10 things to know about India's first retail REIT IPO
Investors may make bids for 150 units and multiples of that. Institutional investors will receive about 75% of the IPO.
In India, this is the first REIT retail asset offering. Three REITs are currently listed on stock exchanges, and all three are backed by office assets.
According to a document submitted to SEBI, the company has set aside up to 75% of the offer for high net worth individuals (HNI) and the remaining 25% for qualified institutional buyers (QIB). The book running lead managers for the planned public offering are Morgan Stanley, JP Morgan, Kotak Mahindra Capital, Axis Capital, and BoA ML.
In India, this is the first REIT retail asset offering. Three REITs are currently listed on stock exchanges, and all three are backed by office assets.
Check out: Two upcoming IPOs in May: Nexus Select Trust, and Auro Impex & Chemicals; check details
The Draft Red Herring Prospectus (DRHP) for Nexus Select Trust's retail REIT public offering was filed with Securities and Exchange Board of India (SEBI) in November last year.
Total Net Operating Income (NOI) for the company is anticipated to increase organically by 17% to ₹1,897.1 crore in 2025–26 from ₹1,619.8 crore in 2023–24. The NOI for the first nine months of the previous fiscal year was around ₹1,050 crore.
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Bofa Securities, Axis Capital, Citigroup, HSBC Securities, JM Financial, JP Morgan, Kotak Mahindra Capital and Morgan Stanley are the book running lead managers for the REIT IPO.
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