The IPO of Nexus Select Trust REIT (Real Estate Investment Trust) will open for subscription on May 9, 2023. This is the first REIT IPO after SEBI reduced the minimum application size for the REIT and InvIT (Infrastructure Investment Trust) IPOs from around Rs. 50,000 to between Rs. 10,000 and 15,000 and application through UPI was allowed.
What is a REIT?
REITs [Real Estate Investment Trusts] are like mutual funds for real estate investment. Investors pool their money, and a REIT invests in commercial properties. Returns come from rental income and property value appreciation. Check out this asset allocation module on Varsity to learn how you can use REITs in your investment portfolio.
Here are the REITs already listed in India:
If you have any queries on REITs, you can post them below.
Things to note before applying for Nexus Select Trust REIT IPO
- The retail investor category is not available for this IPO and you will be able to make an application only in the Non-institutional investor (NII) category.
- Once submitted, IPO applications in the NII category cannot be canceled. The bid can only be modified upwards.
- You can make an application using UPI on Kite for up to Rs. 5 lakhs.
About Nexus Select Trust REIT
Backed by Blackstone Inc., Nexus Select Trust is the owner of India’s leading consumption centre platform, primarily investing in retail real estate assets.
As of December 31, 2022, the portfolio of Nexus Select Trust includes 17 operational shopping malls across 14 major, covering an area of 9.2 million square feet with a tenant base of 1,044 domestic and international brands with 2,893 stores. Along with this the portfolio also includes two hotel assets and three office assets totaling 1.2 million square feet area.
The Nexus Select Trust REIT (Real Estate Investment Trust) will be the first in the retail real estate space. The three REITs listed on the stock exchanges, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust are focused on leased office assets.
The initial public offering comprises a fresh issue of units worth Rs. 1,400 crores and an offer for sale of units aggregating up to Rs. 1,800 crores.
Objects of the issue:
- Partial or full repayment or prepayment and redemption of the certain financial indebtedness of the Asset SPVs and the Investment Entity.
- Acquisition of stake and redemption of debt securities in certain Asset SPVs.
- General purposes.
Financial Information
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EBITDA (₹ crores) |
|---|---|---|---|---|
| March 31, 2020 | 9,527.64 | 1,708.19 | 206.74 | 1077.22 |
| March 31, 2021 | 8,959.36 | 1,047.97 | -199.11 | 613.03 |
| March 31, 2022 | 9,089.77 | 1,398.52 | -10.95 | 857.98 |
| As of December 31, 2022 | 8,989.53 | 1,498.35 | 257.02 | 934.18 |
For more information, you can check the IPO prospectus here.
Important information regarding the IPO
| Issue Period | 9th May - 11th May 2023 |
|---|---|
| Price Band | ₹ 95 - 100 |
| Minimum Bid Quantity | 150 and multiples thereof |
| Number of Shares | 319,999,950 units |
| Issue size | ₹ 3,200 Cr |
| Date of Allotment | 16th May 2023 |
| Initiation of Refund | 17th May 2023 |
| Credit of shares | 18th May 2023 |
| Date of Listing | 19th May 2023 |
| Mandate end date | 26th May 2023 |
| Anchor Investors Lock-in End Date | 10th June 2023 |
How do I apply to the Nexus Select Trust REIT IPO?
You can apply for the Nexus Select Trust REIT IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
Where do I check the allotment status for Nexus Select Trust REIT IPO?
You can check the allotment status for the Nexus Select Trust REIT IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.
