Mumbai: The initial public offering (IPO) of Embassy Office Parks REIT (‘Embassy REIT’), the first ever by a Real Estate Investment Trust in India, will open on March 18, 2019 at a price band of Rs 299 to Rs 300. Embassy REIT is issuing Units aggregating up to Rs 4,750 crore (the Issue).
This issue will constitute at least 10 per cent of the issued and paid-up units on a post-issue basis in accordance with Regulation 14(2A) of the REIT Regulations. The issue will close on March 20, 2019. Based on upper price band of Rs 300, EOP REIT is issuing approximately 15,83,33,333 units.
Out of this, 2,92,08,800 units (Rs 876.3 crore) are issued to strategic investors, thus the net offer is of Rs 3,873.7 crore. Out of the net funds mobilised, and EOP REIT will use Rs 3,710 crore for repayment/ pre-payment of certain debts and the rest for acquisition of certain assets.
The units of the Embassy REIT are proposed to be listed on the National Stock Exchange of India Limited (the ‘NSE’) and BSE Limited (the ‘BSE’). The manager, in consultation with the lead managers, may retain over subscription in the issue in accordance with the REIT and SEBI Guidelines.
The issue is being made through the Book Building Process and in compliance with the REIT and the SEBI Regulations, wherein not more than 75% of the issue (excluding the strategic investor portion) shall be available for allocation on a proportionate basis to institutional investors, provided that the manager may, in consultation with the lead managers, allocate up to 60 per cent of the institutional investor portion to anchor investors on a discretionary basis in accordance with the REIT and SEBI Guidelines.
Further, not less than 25% of the issue (excluding the Strategic Investor Portion) shall be available for allocation on a proportionate basis to Non-Institutional Investors, in accordance with the REIT Regulations and the SEBI Guidelines, subject to valid bids being received at or above the issue price.
Bids can be made for a minimum lot of 800 units (i.e. Rs 2,40,000) and in multiples of 400 units (i.e. Rs. 1,20,000) thereon, thereafter by bidders other than the units subscribed for by anchor investors & strategic investors.
