Nexus Select Trust REIT IPO: Blackstone-backed Nexus Select Trust REIT units listed at 3% premium over IPO price on NSE and BSE amid a flat domestic market. The units debuted at Rs 103 on the NSE, as compared to the issue price of Rs 100 per unit. The scrip touched a high of 3.7% at Rs 103.74. A mildly positive listing was expected as ahead of the market debut, Nexus Select Trust REIT units were trading at a premium of Rs 3 in the grey market and gained 3% in the pre-open market.
Nexus Select Trust REIT Rs 3,200 crore IPO opened for subscription on 9 May and the issue was booked 5.45 on day 3. Qualified institutional buyers (QIBs) subscribed for 4.81 times of their reserved portion. The NII portion garnered 6.23x bids so far and is oversubscribed. The IPO closed for subscription on 11 May.
The issue’s price band was set at Rs 95-100 per unit. The public offering comprised a fresh issue of units up to Rs 1,400 crore and an offer for sale (OFS) component with unitholders offloading units up to Rs 1,800 crore. The issue size was earlier proposed to be Rs 4,000 crore.
Nexus Select Trust boasts of 17 malls located across 14 cities and according to the RHP, the trust’s portfolio constituted 30% of India’s total discretionary retail spending in FY20 and had an average population. This IPO will be the third REIT sponsored by Blackstone, which launched India’s first REIT, Embassy Office Parks REIT, and then the Mindspace Business Parks REIT. However, while these REITs are focussed on office spaces, Nexus Select Trust will be India’s first listed rent-yielding retail REIT.
“Nexus has expanded significantly in the last three fiscal years and is well-positioned to report continued growth in the future by expanding the tenant base and taking advantage of market opportunities. According to the management, following the utilization of the net proceeds, its leverage will be in a comfortable position, thereby providing it with flexibility to pursue value-accretive acquisitions in the future. Thus we assign a “SUBSCRIBE” rating for the issue,” said Choice Broking.