FIIs lead Mindspace REIT IPO anchor allotment of ₹1,518 crore

MUMBAI: Ahead of the launch of its initial public offering (IPO), Mindspace Business Parks REIT, on Friday raised ₹1,518.74 crore by allocating shares to institutional investors as part of the anchor allotment for the offer.

In an exchange filing, Mindspace REIT, only the second real estate investment trust in the country to launch a public offering, said it had allocated 5.52 crore shares under the anchor allotment.

Shares were issued to these investors at ₹275 per share, the upper end of the price band of ₹274-275 set for the IPO. The Mindspace REIT IPO opens on 27 July and closes on 29 July.

The anchor allotment was led by foreign institutional investors (FIIs) such as the government of Singapore, funds managed by Nomura, Capital Group, Fidelity, HSBC and Schroder.

Domestic institutional investors that participated in the anchor allotment include Axis Mutual Fund, IIFL Special Opportunities Fund, ICICI Prudential MF and insurance companies such as Max Life Insurance, Star Health & Allied Insurance Co, and Aditya Birla Sun Life Insurance.

Apart from the anchor allotment, Mindspace REIT has also tied up investments worth Rs1,125 crore through a so-called strategic investor allotment.

Investors that participated in this share allotment included Singapore state investor GIC, Fidelity, Capital Group and Fullerton.

Mindspace REIT plans to raise a total of ₹4,500 crore through the IPO. Of this, it has now raised ₹2,644 crore through the above two allotments.

The IPO will see the REIT raise ₹1,000 crore of fresh capital, while its owner K Raheja group and Blackstone are selling units worth ₹3,500 crore through the IPO.

Mindspace Business Parks REIT has a portfolio of 29.5 million sq ft of commercial properties located in major cities such as Mumbai, Pune, Chennai and Hyderabad, out of which around 24.5 million sq ft area has been constructed.