The public may subscribe to the 3,200-crore Nexus Select Trust REIT’s initial public offering, which opens today and closes on May 9. On May 11, the issue will be resolved. Investors can place bids in multiples of 150 units within the company’s fixed price range of 95 to 100 per unit.

Details of the Issue

 

The public offering consists of a fresh issuance of up to 1,400 crore shares and a selling shareholder offer to sell up to 1,800 crore shares.

Its Investors

 

The REIT raised $1,439.99 crore from 16 anchor investors as part of the IPO process. 16 anchor investors received shares from Nexus Select Trust at a price of $100 per unit. The largest mutual fund allocation was made by HDFC MF ($280 crore), followed by IIFL AMC ($150 crore), ICICI Pru MF ($100 crore), and SBI MF ($100 crore). SBI Life, Star Health, and HDFC Life Insurance all made subscriptions for shares totalling a combined $175 crore. Prusik, Morgan Stanley, and Tata Investment Corporation were additional anchor investors.

Meanwhile, The investment entity, asset special purpose vehicles, prepayment and redemption of certain financial debt, as well as the purchase of stakes and redemption of debt securities in specific asset SPVs, will all be done with the net proceeds of the issue.

The first retail-focused REIT in the nation, Nexus Select Trust, has a portfolio of assets totalling 9.2 million square feet and 17 malls spread across 14 cities. Additionally, there are two hotels and three offices. The malls had a committed occupancy rate of 96.2% and a market value of $21,146.6 crore as of December 31, 2022.

Nexus Select Trust reported a net profit of 257 crores for the nine months ending December 31, 2022, on revenue of 1,463 crores, with mall rentals accounting for the majority at 1,259 crores.

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