Brookfield India REIT makes flat debut on bourses, ends first trading session below IPO price

Brookfield India Real Estate Investment Trust (REIT) began trading on Dalal Street today at Rs 275.05 per unit, a flat listing debut for the Real Estate Trust over its price band of Rs 274-275 apiece. With this, Brookfield India REIT became the third REIT to be listed on the bourses in India. The Rs 3,800 crore public issue was subscribed 7.94 times earlier this month with both, Qualified Institutional Investors as well as Non-Institutional Investors oversubscribing their quota of the issue. At the end of the day’s trade Brookfield REIT was down 1.83% from its issue price at Rs 269.96 per unit.

Check Live Price: Brookfield India Real Estate Trust REIT

Analysts had expected a premium listing for Brookfield India REIT owing to the current market environment which has seen Sensex and Nifty surge over 12% so far this month. However, grey market activity was hinting at a flat listing. Brookfield India REIT’s IPO was reserved for 75% reserved for QIB while 25% was reserved for NIIs. Bidding for the issue was to be in a lot size of 200 units and multiples thereafter, translating to a minimum investment of Rs 55,000 per lot. 

“Long term investors should just hold onto it as the yield is good at the REIT price band,” Aditya Kondawar, Founder and COO, JST Investments told The Outlooker Online ahead of the listing. Interested investors in the REIT should monitor the listing price and then take a call on whether to buy the REIT at that given price, according to Kondawar. He highlighted that a higher listing price would trim down the distribution yield, making it crucial for investors to gauge their investment.

Also Read: Brookfield REIT IPO listing day strategy: Should you book profits or go long?

Brookfield REIT has a high-quality tenant base with 87% Committed Occupancy along with long-term contracted rentals. 48% of its initial portfolio is rented out to tenants from the technology sector and 21% exposure is to financial services. “At the higher price band of Rs 275 per share, Brookfield REIT’s unit is valued at 88.4% of its net asset value (NAV), as compared to peer average of 96.9%,” brokerage firm Choice Broking said in a note. Angel Broking in its IPO note had said that Brookfield REIT is expected to pay a yield of 7.5% in FY23, something the brokerage firm had termed aggressive and difficult to achieve.

(The stock recommendations in this story are by the respective research and brokerage firms. The Outlooker Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)