Mindspace Business Parks REIT makes decent debut

Shares of Mindspace Business Parks REIT were trading at Rs 304.59 at 10:20 IST on BSE, a premium of 10.76% over the initial public offer price of Rs 275.

The scrip debuted at Rs 304, a premium of 10.55% to the initial public offer (IPO) price. So far the stock hit a high of 308.90 and low of 299 with over 11.91 lakh shares traded in the counter on the BSE so far.

The Real Estate Investment Trust (REIT), which is backed by Mumbai-based real estate company K Raheja Corp and private equity firm Blackstone, is the second REIT IPO after Embassy Office Parks REIT.

The IPO of Mindspace Business Parks REIT was subscribed 12.96 times. The issue opened for bidding on 27 July 2020 and closed on 29 July 2020. The issue price was set at the top end of the Rs 274-275 per share IPO price band.

The institutional investors category, comprising foreign institutional investors, domestic financial institutions, mutual funds, was subscribed 10.61 times. The other investors category, made up of corporates, individuals investors and others, was subscribed 15.77 times.

The proceeds of the fresh issue would be utilised towards partial or full pre-payment or scheduled repayment of certain debt facilities of the Asset SPVs availed from banks/financial institutions (including any accrued interest and any applicable penalties/ premium); purchase of Non-Convertible Redeemable Preference Shares (NCRPS) of Mindspace Business Parks Private Limited (MBPPL); and general purposes.

Mindspace Business Parks REIT owns a quality office portfolio located in four key office markets of India. Its portfolio includes a total leasable area of 29.5 million sq ft with five integrated business parks and five independent offices across the Mumbai Metropolitan Region, Pune, Hyderabad, and Chennai.

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