Nexus Select Trust REIT IPO Fully Subscribed: Blackstone-backed Nexus Select Trust REIT’s Rs 3,200 crore IPO has been fully subscribed on Day 3 at 1.44 times. The QIB portion was subscribed 1.27 times, while the NII portion was overbid for 163%. The issue received bids for 26.6 crore units against 18.5 crore units on offer. The IPO will close for subscription today, 11 May.
Not more than 75% of the offer is allocated for institutional investors and 25% of the IPO is reserved for non-institutional investors. Nexus Select Trust raised Rs 1,440 crore from anchor investors on 8 May as the anchor book opened and closed for subscription in 8 May. For REIT IPOs, NIIs are those who purchase units worth up to Rs 5 lakh in the trust. The date of allotment of units is projected to be 17 May, Wednesday, following which, the issue is expected to list on the bourses on 19 May.
Nexus Select Trust boasts of 17 malls located across 14 cities and according to the RHP, the trust’s portfolio constituted 30% of India’s total discretionary retail spending in FY20 and had an average population. This IPO will be the third REIT sponsored by Blackstone, which launched India’s first REIT,Embassy Office Parks REIT, and then theMindspace Business Parks REIT. However, while these REITs are focussed on office spaces, Nexus Select Trust will be India’s first listed rent-yielding retail REIT.
“Nexus Select is a quasi-play on consumption through its high-quality retail assets. At the upper band of Rs 100/unit (the market cap of Rs 15,150 crore), the issue is at Price/NAV of 0.78x (December, 2022 NAV at Rs 127.7/unit). We assign SUBSCRIBE rating on the back of a) healthy yield potential, b) organic growth opportunities on rent escalation/repricing/releasing and tenant sales and c) potential inorganic growth through assets addition,” said ICICIdirect.