Blackstone’s Nexus Select Trust REIT IPO- Price band set at Rs 95-100 per unit; Rs 3200 cr issue opens 9 May

Blackstone’s Nexus Select Trust REIT IPO: Price band set at Rs 95-100 per unit; Rs 3200 cr issue opens 9 May

Blackstone-backed Nexus Select Trust REIT has set the price band for its Rs 3,200-crore IPO at Rs 95-100 per unit. The public issue will open for subscription on 9 May; it comprises a fresh issue of units up to Rs 1,400 crore and an offer for sale (OFS) component with unitholders offloading units up to Rs 1,800 crore. The issue size was earlier proposed to be Rs 4,000 crore.

Not more than 75% of the offer is allocated for institutional investors and 25% of the IPO is reserved for non-institutional investors. Additionally, the manager may allocate up to 60% of the Institutional Investor portion to anchor investors on a discretionary basis. For REIT IPOs, NIIs are those who purchase units worth up to Rs 5 lakh in the trust. The IPO will close for subscription on 11 May,  Thursday. 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. 

This IPO will be the third REIT sponsored by Blackstone, which launched India’s first REIT, Embassy Office Parks, and then the Mindspace Business Parks REIT. Apart from the two, Brookfield India Real Estate Trust is India’s third listed REIT and is not backed by Blackstone. However, while these three REITs are focussed on office spaces, Nexus Select Trust will be India’s first listed rent-yielding retail REIT.

Morgan Stanley, JP Morgan, Kotak Mahindra Capital, Axis Capital, and BoA ML are the bankers for the proposed public issue.