Real Estate Investment Trust IPOs are very rare in India. The only company being listed in India till now was Embassy Park.
Now, Mindspace Business Park is coming up with its IPO in the market. Once listed, it will become the second REIT (Real Estate Investment Trust) to be listed in India. In this piece, we will explain you the concept, performance and other financial details that will be helpful for you if you are looking to invest in.
What is the Business Model of Mindspace Business Park?
- Mindspace is a REIT. Now if you are wondering what it is, then let us make it easy to understand for you with an example.
- Let’s say there is some big real estate project coming up in some area. As per your analysis, it’s possible that once the project is completed, it will generate excellent revenue. So you want to invest in this project and make a profit from the revenue generated.
- Now if you go to the construction company that is engaged in the erection of the project and ask them for an opportunity to invest, they will not accept it. The reason will be, there is no such model or system for this type of investment.
- That’s where REITs like Mindspace come in. What they do is simple. They create a fund from various investors and shareholders and develop the project by themselves. This allows investors to invest even in a massive project with the meagre amount finally, once the project starts generating revenue, investor benefits from the good returns.
- As per the SEBI norms, every RETI has to distribute 90% of their net income amongst the shareholders.
- Thus the business model of Minspace Business Park is quite unique.
Now, let us take a look at some important dates related to Mindspace Business Park IPO.
Mindspace Business Parks REIT IPO
| Bid Opens On | Jul 27, 2020 |
| Bid Closes On | Jul 29, 2020 |
| Allotment finalization | Aug 6, 2020 |
| Initiation of Refunds | Aug 7, 2020 |
| Credit of Shares to Demat Acct | Aug 7, 2020 |
| Shares Listing Date | Aug 12, 2020 |
About Mindspace Business Park
Mindspace has a quality office at four major cities viz. Mumbai, Pune, Chennai and Hyderabad. The leasable area of Mindspace is 12.1 million sq. ft in Mumbai, 11.6 million sq. ft in Hyderabad, five million sq. ft in Pune and 0.8 million sq. ft in Chennai
Talking about their ongoing projects, they have 2.8 million sq.ft projects under construction, and they are planning to add another 3.6 million sq.ft to their portfolio in Chennai, Hyderabad and Mumbai.
Financial Particulars
For the year/period ended (₹ in Million)
| Particulars | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 |
| Total Assets | 1,12,224 | 91,437 | 84,738 | 81,293 |
| Total Revenue | 20,262 | 16,797 | 15,022 | 14,354 |
| Profit After Tax | 5,139 | 5,154 | 1,610 | 2,313 |
Issue of the objective
Mindspace wants to achieve below-mentioned objectives via the fund raised by their IPO
- Partial or full pre-payment and re-payment of certain debt facilities of the Asset SPV availed by the company.
- Purchase of Non-convertible Redeemable Preference share of Mindspace
- To mitigate general expenses
A Complete Detail of Mindspace IPO
| Issue Date | Jul 27, 2020 – Jul 29, 2020 |
| Issue Type | Book Built Issue REIT |
| Issue Size | 4,500.00 Cr |
| Fresh Issue | Aggregating up to 1,000.00 Cr |
| Offer for Sale | 3,500.00 Cr |
| Issue Price | ₹274 to ₹275 per equity share |
| Market Lot | 200 Shares (1 lot) |
| Min Order Quantity | 200 Shares |
| Listing At | BSE, NSE |
| Market Cap (₹ Cr.) | 23675 |
Mindspace Business Parks REIT IPO Contact Information
| Contact Details | Registrar |
|---|---|
| Mindspace Business Parks REIT Registered Office – Raheja Tower, Level 8, Block ‘G’, C-30, Bandra Kurla Complex, Mumbai – 400 051. | KFin Technologies Private Limited Selenium, Tower B, Plot No. 31 & 32 Financial District, Nanakramguda, Serilingampally, Hyderabad 500032, Rangareddi Telangana, India |
| Phone +91-22-2656 4000 | Phone +91 40 6716 2222 |
| Email [email protected] | Email [email protected] |
| Website: www.mindspacereit.com | Website: www.kfintech.com |
Promoters of Mindspace Business Park
The Mindspace has a concept of promoters that runs and manages the company. Her, ACL (Anbee Construction LLP) and CTL(Cape Trading LLP) are the promoters.
Strength of Mindspace
- The company has Powerful presence in market with compelling tenant base in some of the largest cities in India.
- Highly experienced and efficient management team with Vinod Rohira at helm will manage the REIT. He has extensive of 20 plus years in real estate industry. He will be leading the team of seven members. All of them have commendable experience in the field.
- The company has Uninterrupted cash-flow due to their unique business model and rental incomes
- The company has Powerful presence in market with compelling tenant base in some of the largest cities in India.
- Highly experienced and efficient management team with Vinod Rohira at helm will manage the REIT. He has extensive of 20 plus years in real estate industry. He will be leading the team of seven members. All of them have commendable experience in the field.
- The company has Uninterrupted cash-flow due to their unique business model and rental incomes
Check out the Region-Wise Revenue of Mindspace Business Park
| Property Location | Revenue | Property Value |
|---|---|---|
| Mumbai | 660 Crores | 9202 Crores |
| Hyderabad | 623 Crores | 9057 Crores |
| Pune | 482 Crores | 4268 Crores |
| Chennai | 0 Crores | 594 Crores |
Final Review on the Mindspace IPO
- Mindspace’s offer price stands at the 15 % discount of the current NAV. So it’s a good option for investors who are interested in investing in this unique niche.
- On the contrary, the lot size of the IPO is 54,800, and this can be a problem, especially for retail investors.
- As the COVID-19 cases are continuously rising, almost every major IT company has allowed Work from Home to its employees. These can negatively impact the valuation of the company.
- But, when the pandemic will trickle out, the demand for excellent, hygiene and plush work-space will boom definitely, and that can be very helpful for the company.
- Al-in-all, investing in this IPO is for those who are looking to invest in a different niche and have sufficient funds.
- Moreover, due to COVID-19 pandemic, the time-frame for the epidemic should be extended.
Note: The investor should take the final decision for investment in this IPO after a detailed consideration of the facts mentioned above.
Investors are advised to do their personal analysis and take the final decision as per their risk appetite and financial objectives.
FAQs for Mindspace Business Parks REIT IPO
What is Mindspace Business Parks REIT IPO?
This IPO offer by Mindspace Business Parks REIT. Company planning to expand capital by listing on BSE & NSE.
How do I apply for the Mindspace Business Parks REIT IPO?
Anyone having demat account are eligible for application. There are two method available for application.
ASBA Payment Method: The net-banking facility available for online IPO application.
UPI Payment Method: By using UPI payment method for application process.
What is the Mindspace Business Parks REIT IPO issue date?
Mindspace Business Parks REIT IPO issue period is from 27 Jul 2020 to 29 Jul 2020.
What is the Mindspace Business Parks REIT IPO allotment date?
Allotment date is 20 Jul 2020 and share will transfer to your demat account on 06 Aug 2020.
What if Mindspace Business Parks REIT IPO Shares not allotted to me?
Suppose Mindspace shares not allotted to you than refund will be credited to your linked bank account.
How to Apply Mindspace Business Parks REIT IPO through Zerodha?
Zerodha customers can apply for Yes Bank through UPI’s payment gateway by Zerodha Console. Pls follow Below steps.
1.login to console.zerodha.com
2.Portfolio<<IPOs
3.Get the list of current listed IPOs.
4.You can apply for an IPO online.
What is the Mindspace Business Parks REIT IPO Listing date?
Listing date for this IPO is 12 Aug 2020.
Is there any other Mindspace Business Parks REIT IPO Listing later this year?
There is no such information available regarding the further listing of Mindspace Business Parks REIT IPO.
Will I get a discount if I am Yes Bank Employee?
No Information
What is the Lot Size of Mindspace Business Parks REIT IPO?
Minimum 200 shares (1 lot) is available. One share price is ₹ 275 so 1 lot of 200 shares will be ₹ 55,000.
What is the face value of Mindspace Business Parks REIT IPO?
Face value is ₹ 275 Per Equity Share.
What CAMS IPO symbols in NSE & BSE?
NSE: MINDSPACE, BSE: 543217
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