The initial public offering of Embassy Office Parks REIT was subscribed by 2.69 times on Wednesday — the last day of the issue. The company plans to raise around ₹4,750 crore in India’s first such listing.
The quota for institutional investors was subscribed 2.15 times and non-institutional 3.1 times. Embassy Office Parks is a joint venture between Bengaluru-based property developer and PE firm Blackstone. The REIT issue is priced at ₹299-300 a unit.
The IPO had raised ₹1,743 crore from anchor investors ahead of the issue opening for public. Ace investors Radhakishan Damani and Gopikishan Damani invested in the anchor category. Kotak Mahindra Life Insurance Company is another large investor.
Embassy’s portfolio comprises seven office parks and four city-centre office buildings totalling 32.6 million square feet as on March 2018. Under the REIT structure, a company owns and operates income-producing realty assets such as office spaces and apartment buildings, warehouses, hospitals, shopping centres, and hotels, among others.
‘Encouraging sign’
Shishir Baijal, CMD, Knight Frank India, said the oversubscription is an encouraging sign for the realty sector at large and specially for the commercial segment. “This positive response to the REIT will help build further confidence amongst global investors and attract them to consider India along with its global peers such as Singapore and Hong Kong.”