Property Share REIT IPO: Price, GMP, Valuation

Property Share REIT IPO-Complete Overview

Property Share REIT IPO an SME IPO is a book-built issue of Rs.352.91 crore (1 Share) by Property Share Investment Trust SM REIT which was incorporated in June 2024. The organization is a SEBI-registered small and medium real estate investment trust. The Trust's very first scheme is PropShare Platina, which has six wholly owned SPVs under its structure under the REIT Regulations.

Axis Trustee Services Limited is the trustee of this organization.

The Trustee provides the following services as-

• Debenture Trustee

• Security Trustee

• Facility Agent

• Escrow Agency

• Custody Services

• Trust and Retention Account

• Securitization Trustee

• Share Monitoring Trustee

• Lender Repayment Trustee

• Digital Escrow Agency

• Trustee of REITs, InvITs, AIFs, family trusts, etc. in the domestic market.

This new IPO is to be launched on 02 December 2024, and the initial public offering of this upcoming IPO will end on 04 December 2024.

Property Share REIT IPO Details

The Rs.352.91 crore Property Share Investment IPO comprises 3,361 Shares. The IPO listing date is on December 09, 2024. Property Share REIT IPO share price is Rs.1000000 to Rs.1050000.

If you want to apply for the IPO, Click Here to open a Demat Account.

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Reimbursement of the Investment Manager for the proposed acquisition of the Project Platina by the Platina SPVs as commercial office spaces through lending to the Platina SPVs and subscribing to the equity and debt instruments of the Platina SPVs, as well as the payment of applicable statutory charges under applicable laws (such as stamp duty, registration, surcharge, and cess, among others, for the registration of sale deeds).

• Corporate Purposes.
  
  

Peers of Property Share REIT Limited

No listed companies in India under SMREIT as mentioned in the Trust Offer Document (TOD)

 

IPO's Strengths 

• Prestige Group had developed an asset grade A, LEED gold

• An outer ring road, Bangalore's largest office market.

• Proposed a 100% lease to a US-based technology company.

• Stable Flow from the proposed lease's long 9-year lease with a 3-7-year staggered lock-in period.

• Cash flows linked to inflation with contracted escalations every 3 years under the proposed lease.
  
  

IPO’s Weaknesses 

• Market Dependence: The major sources of income for the Trust are commercial office spaces that are leased out. Any downturn in the real estate market or reduced tenant demand may adversely affect cash flows. Regulatory Risks: Non-complication with REIT regulations or changes in the taxation laws could lead to increased costs in their operations.

• Operational Challenges: Management of diversified tenants across multiple properties requires very strong systems and processes. Any lapse in operational efficiency will affect occupancy and rental income.

• Competition: The growing REIT market will result in more competition for the top tier of premium commercial properties.

 

Property Share REIT IPO GMP

Property Share REIT IPO GMP today is NA (as of 28 November 2024).

Property Share REIT IPO Timetable (Tentative)

The IPO date is from 02 December to 04 December, with IPO allotment on 05 December, and refund initiation on 06 December. The IPO listing date is on 09 December 2024.

 

Property Share REIT IPO Other Details 

The IPO offers a total issue size of 3361 Shares and it will be listed at BSE and SME.

Property Share REIT IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1 Share) amounting to Rs.10,50,000.

IPO Reservation

IPO Lead Managers

• ICICI Securities Limited.

Conclusion

The Property Share REIT IPO is about property investment. This is all about Grade A commercial office buildings with exceptionally long leases, and generally long-term stability, thus providing consistent returns. But with all of this comes risks, such as reliance on the markets or regulatory issues. One must measure high investment size against individual objectives before investment.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER:

DISCLAIMER: NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing. 

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