Nexus Select Trust REIT IPO: 10 things to know before subscription opens next week on May 9

The initial public offering of Nexus Select Trust – a Blackstone-sponsored company – is scheduled to open next week on Tuesday, May 9 and shall close on Thursday, May 11, 2023.

10 things to know before subscription opens next week

1) The three-day IPO is a fresh issue of units worth up to Rs 1,400 crore and an Offer For Sale (OFS) of up to Rs 1,800 crore.

2) The Rs 3,200 crore retail REIT public issue has fixed the price band at Rs 95 per unit to Rs 100 per unit for the proposed issue.

3) This will be India's first REIT (Real Estate Investment Trust) IPO backed by rent yielding retail real estate assets. At present, there are 3 listed REITs on stock exchanges, but all backed by office assets.

4) Nexus Select Trust filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its retail REIT public issue last year in November.

5) Key promoter Blackstone’s shareholding in Nexus Select Trust will come down to 43 per cent from 60 per cent post the IPO.

6) This will be the third REIT sponsored by Blackstone as it had launched India's first REIT Embassy Office Parks and then Mindspace Business Parks REIT.

7) Nexus Select Trust has a portfolio of 17 operational shopping malls across 14 major cities, covering a 9.8 million square feet area.

8) The company's total income for the first nine months of 2022-23 stood at Rs 1,498.35 crore and it is projecting net income to grow by 17 per cent in 2025-26.

9) The book running lead managers to the offer include BofA Securities India, Axis Capital Limited, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), IIFL Securities, JM Financial, JP Morgan India, Kotak Mahindra Capital Company, Morgan Stanley India Company and SBI Capital Markets.

10) REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets.

With PTI Inputs