Brookfield India Real Estate Investment Trust (REIT) started trading on Dalal Street today at Rs 275.05 per unit, a flat listing debut for the Real Estate Trust more than its cost band of Rs 274-275 apiece. With this, Brookfield India REIT became the third REIT to be listed on the bourses in India. The Rs 3,800 crore public situation was subscribed 7.94 instances earlier this month with each, Qualified Institutional Investors as nicely as Non-Institutional Investors oversubscribing their quota of the situation. On listing the REIT had a market place capitalization of Rs 8,328 crore.
Check Live Price: Brookfield India Real Estate Trust REIT
Analysts had anticipated a premium listing for Brookfield India REIT owing to the present market place atmosphere which has noticed Sensex and Nifty surge more than 12% so far this month. However, grey market place activity was hinting at a flat listing. Brookfield India REIT’s IPO was reserved for 75% reserved for QIB though 25% was reserved for NIIs. Bidding for the situation was to be in a lot size of 200 units and multiples thereafter, translating to a minimum investment of Rs 55,000 per lot.
“Long term investors should just hold onto it as the yield is good at the REIT price band,” Aditya Kondawar, Founder and COO, JST Investments told TheSpuzz Online ahead of the listing. Interested investors in the REIT ought to monitor the listing cost and then take a contact on regardless of whether to invest in the REIT at that offered cost, according to Kondawar. He highlighted that a greater listing cost would trim down the distribution yield, creating it critical for investors to gauge their investment.
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Brookfield REIT has a higher-top quality tenant base with 87% Committed Occupancy along with extended-term contracted rentals. 48% of its initial portfolio is rented out to tenants from the technologies sector and 21% exposure is to economic services. “At the higher price band of Rs 275 per share, Brookfield REIT’s unit is valued at 88.4% of its net asset value (NAV), as compared to peer average of 96.9%,” brokerage firm Choice Broking stated in a note. Angel Broking in its IPO note had stated that Brookfield REIT is anticipated to spend a yield of 7.5% in FY23, some thing the brokerage firm had termed aggressive and tricky to attain.
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