Nexus Select Trust REIT IPO receives 57% subscription on Day 2 of offer

The Initial Public Offering (IPO) of Nexus Select Trust, the first REIT backed by rent yielding retail real estate assets, was subscribed 57 per cent on the second day of the offer on Wednesday. The Rs 3,200 crore-share sale received bids for 10.56 crore units against 18.52 crore units on offer, as per an update.

The Non Institutional Investors category got fully subscribed, while Qualified Institutional Buyers (QIBs) portion received 17 per cent subscription.

The Real Estate Investment Trust is sponsored by Blackstone.

On Monday, Nexus Select Trust raised Rs 1,440 crore from anchor investors.

The offer includes fresh issue of units worth up to Rs 1,400 crore and an Offer For Sale (OFS) of up to Rs 1,800 crore.

The company has fixed the price band at Rs 95 per unit to Rs 100 per unit for the issue scheduled to close on May 11.

Nexus Select Trust has a portfolio of 17 operational shopping malls, including Delhi's premium Select City Walk, across 14 major cities covering a 9.8 million square feet area. It operates two hotels with 354 keys, and also office spaces as part of mixed use development.

Post-IPO, the shareholding of Blackstone in Nexus Select Trust will come down to 43 per cent from 60 per cent. Select City Walk promoters' stake will reduce slightly to 24.3 per cent from 25 per cent.

At present, there are three listed REITs -- Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust -- on the Indian stock exchanges but all of them are backed by leased office assets.

This is the third REIT sponsored by Blackstone. It launched India's first REIT Embassy Office Parks and then Mindspace Business Parks REIT.

BofA Securities India, Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), IIFL Securities, JM Financial, J P Morgan India, Kotak Mahindra Capital Company, Morgan Stanley India Company and SBI Capital Markets are the managers to the offer.