Embassy Office Parks REIT IPO subscribed 47%

Receives bids for 3.31 crore units

The initial public offer (IPO) of Embassy Office Parks REIT received bids for 3.31 crore units today, 19 March 2018, as against 7.12 crore units on offer, as per the National Stock Exchange of India (NSE) website data at 17:00 IST. The issue was subscribed 0.47 times.

The issue opened for subscription on 18 March 2019 and closes on 20 March 2019. The price band for the issue has been fixed at Rs 299 to Rs 300 per unit. Minimum application is for 800 units (i.e., Rs 2.4 lakh at higher price and Rs 2.39 lakh as lower price) and in multiples of 400 units thereafter.

Ahead of the opening of the IPO, the board of directors of the company at its meeting held on 15 March 2018, finalised allocation of 5.81 crore units to anchor investors at Rs 300 each.

The Embassy Office Parks REIT (Embassy) is an irrevocable trust and was registered with SEBI on 3 August 2017, as a real estate investment trust under Regulation 3(1) of the REIT Regulations. The Embassy REIT has been settled by the Embassy Sponsor. Subsequently, in August 2018, SEBI took on record the addition of the Blackstone Sponsor to the sponsors of the Embassy REIT. As of the date, the Embassy Sponsor and the Blackstone Sponsor are the sponsors of the Embassy REIT.

Embassy is the owner of a high quality office portfolio in India that serves as essential corporate infrastructure to multinational tenants and has significant embedded growth prospects. The company's portfolio comprises 7 best-in-class office parks and 4 prime city-center office buildings totalling 32.7 m sq feet as of 31 December 2018, with strategic amenities, including two completed and two under-construction hotels totalling 1,096 keys, food courts, employee transportation and childcare facilities.

Of the total 32.7 m square feet, around 60.5% is in Bengaluru, 16.2% is in Mumbai, 14.4% in Pune and rest 8.9% is in Noida.

The IPO proceeds will be utilized for repayment of loans and debts of Rs 3710 crore, Rs 460 crore towards acquisition of the Embassy One Assets currently held by EODPL and rest for general corporate purposes.

On a consolidated basis, Embassy Office Parks REIT reported total profit after tax (PAT) of Rs 285.11 crore on net sales of Rs 1375.98 crore in the nine-months ended December 2018.

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