The ₹3,200-crore Blackstone-backed Nexus Select Trust’s initial public offering of REIT will close public subscription today. The issue was subscribed 57 per cent so far.

The REIT offer comes at a price band of ₹95–100 per unit and investors can bid in multiples of 150 units.

Subscription details

The offer has received bids for 10.55 crore units against an offer size of 18.52 crore units, according to data available with the exchanges.

The non-QIB portion was subscribed 1.05 times or 105 per cent, while the QIB portion, post the anchor allotment, was subscribed by 17 per cent.

The public issue comprises a fresh issuance of shares aggregating up to ₹1,400 crore and an offer for the sale of shares by the selling shareholders aggregating up to ₹1,800 crore.

Anchor investors

As part of the IPO process, REIT raised ₹1,439.99 crore from 16 anchor investors. Nexus Select Trust allotted shares to 16 anchor investors at ₹100/unit.

Among the mutual funds, HDFC MF had the highest allocation of units at ₹280 crore, followed by IIFL AMC with ₹150 crore, ICICI Pru MF ₹100 crore, and SBI MF ₹100 crore.

HDFC Life Insurance subscribed to units worth ₹175 crore, SBI Life at ₹144 crore, and Star Health at ₹100 crore. Other anchor investors included Prusik, Morgan Stanley, and Tata Investment Corp.

Utility of funds

Net proceeds of the issue will be utilised for partial or full repayment or prepayment and redemption of the certain financial indebtedness of the asset special purpose vehicles and the investment entity; acquisition of stakes and redemption of debt securities in certain asset SPVs; and general purposes.

Nexus Select Trust is the first retail-focused REIT in the country and the portfolio of assets consists of 17 malls spread across 14 cities and 9.2 million sq ft. There are also three offices and two hotels.

As on December 31, 2022, the malls had a committed occupancy of 96.2 per cent and a total market value of ₹21,146.6 crore.

For the nine months to December 31, 2022, Nexus Select Trust reported a net profit of ₹257 crore on revenue of ₹1,463 crore of which mall rentals accounted for the bulk at ₹1,259 crore.