IPO Introduction
In the world of the corporate realm, Initial public offering is the process by which a private company can go public by sale of its share to the general public. It could be a new, young company or an old company which decides to be listed on the bourses and hence goes public.
Generally, companies can raise equity capital with the help of the process of IPO, FPO, and rights issue, and in the form of IPO by issuing new shares to the public or its existing shareholders, Company can sell their shares to the public hesitant free without raising any fresh capital.
In this way company that offers its shares, is referred to as an issuer they do so with the help of investment banks and agencies. After IPO proceeding the company’s shares are traded in the regular market. These listed shares can be further sold by investors through secondary market trading.
Mindspace Business Parks REIT Details
Backed by Ace group Raheja Developers and Blackstone, Mindspace Business Parks REIT is a reputed name in the corporate realty sector. It has an offering of a quality office portfolio in Mumbai, Hyderabad, Pune, and Chennai. In form, elite business parks in Mumbai are Mindspace Airoli East Business Park, Mindspace Airoli West Business Park, Paradigm Mindspace Malad, and The Square, BKC(2).
Other properties in the Pune include CommerZone Yerwada Business Park, Gera Commerzone Kharadi Business Park, and The Square, Nagar Road. The Chennai properties include Commerzone Porur. And, the office parks in Hyderabad includes CommerZone Pocharam and
Mindspace Madhapur.
The total leasable area of Mindspace Business Parks is 18.1 MSF, 9.6 MSF, 8.0 MSF, and 0.9 MSF in Mumbai, Hyderabad, Pune, and Chennai, respectively. With its total leasable area of 29.5 MSF, it is one of the largest Grade-A office portfolios in India.
The under-construction area of the company is 2.8 m sq ft. The future construction of Mindspace Business REIT is spread across Hyderabad, Chennai, and Mumbai in a 4.6-meter square feet area.
IPO Process
Application of IPO can be made on Brokerage platforms like Zerodha or via ASBA (Applications Supported by Blocked Amount) or via the Karvy Fintech platform link will be updated soon. In both, the above methods amount will be blocked against the number of shares and will be credited if shares are not allotted thereafter.
The objective of the Initial Public Opening (IPO)
The proceeds will be utilized towards the following objects:
1. Partial or full pre-payment or scheduled repayment of certain debt facilities of the Asset RPVS availed from banks/financial institutions.
2. Purchase of instruments to improve asset quality like NCRPS of MBPPL.
3. General purposes Requirement.
IPO Details
Mindspace REIT Details
| IPO Date | Jul 27, 2020 – Jul 29, 2020 |
| Issue Type | Book Built Issue REIT |
| Issue Size | Equity Shares of ₹ (aggregating up to ₹4,500.00 Cr) |
| Fresh Issue | Equity Shares of ₹ (aggregating up to ₹1,000.00 Cr) |
| Offer for Sale | Equity Shares of ₹ (aggregating up to ₹3,500.00 Cr) |
| Face Value | ₹10 per equity share |
| IPO Price | ₹274 to ₹275 per equity share |
| Market Lot | 200 Shares |
| Min Order Quantity | 200 Shares |
| Listing At | BSE, NSE |
| Market Cap (₹ Cr.) | 23675 |
Mindspace REIT Tentative Date / Timetable
| Bid/Offer Opens On | Jul 27, 2020 |
| Bid/Offer Closes On | Jul 29, 2020 |
| Finalization of Basis of Allotment | Aug 6, 2020 |
| Initiation of Refunds | Aug 7, 2020 |
| Crediting of Shares to Demat Account | Aug 7, 2020 |
| IPO Shares Listing Date | Aug 12, 2020 |
Mindspace REIT Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 200 | ₹55,000 |
| Maximum | 3 | 300 | ₹165,000 |
Company key Competitive Strengths
1. Diversified and high-quality tenant base.
2. Rich strong industry fundamentals.
3. Experienced management team with KRC group support.
4. Stable healthy cash flows.
MINDSPACE REIT IPO Ratings
Interest speculative investors are recommended by analysts to invest according to the IPO subscription, MINDSPACE REIT recommendation by financial bodies and institutes are as follow.
- Anand Rathi Capital- Subscribe
- Angel Broking Ltd – Subscribe
- Axis Capital Ltd – Subscribe
- KR Chauksey research – Subscribe
- Charms Equity Broking Pvt Ltd – Subscribe for Long Term
- Elara Investments – Subscribe for Long Term
- Kotak Mutual Fund – Subscribe
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