IPO Details
Here is snap shot of the IPO
- Issue Opening – July 27th 2020
- Issue Closing – July 29th 2020
- Price Band – INR 274 to INR 275
- Minimum Order Size – 200 shares
- Minimum Investment – (200 * 275) = INR 55,000
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Business Details
Below diagram provides snapshot of business details of the Company
It has major presence in key cities of India
- Mumbai Region (41%)
- Hyderabad (39%)
- Chennai (17%)
- Pune (3%)
It has total leasable area of 29.5 msf out of which it has already completed 23 msf. 2.8 msf is under development area where as for future development 3.6 msf is left.
For past few years the occupancy ratio of the Company has been above 90% which is excellent by any standard. It has two of the largest business parks operational under its belt
- Mindspace Madhapur Hyderabad
- Mindspace Airoli Mumbai region
85% tenants of the Company are Multinational Companies (MNC) and 39% are Fortune 500 companies. Majority of space is occupied by Technology Companies (close to 45%) followed by Financial Sector Companies (close to 22%).
It has some big names among tenants for example
- Accenture
- Qualcomm
- Amazon
- JP Morgan
- UBS
IPO Subscription Status
IPO subscription status is important input in deciding whether you need to invest in the IPO or not as discussed in IPO investment tips.
- QIB – 10.61 times
- NII – 15.77 times
- Total Subscription is 12.96 times
Below is meaning of the Key terms used above
- QIB is (Institutes or Mutual Funds like HDFC AMC etc)
- NII is (People bidding for more than 2 lakhs in IPO application)
- Employee and Others are Reserved Quota Investors.
My Opinion
This article evaluates whether one has to apply for the IPO and get listing gains. It does not evaluate long term investing in the Company. Having said that REIT is new thing in Indian market.
This space has only one listed company which was listed back in year 2019 itself. This is second Company to get listed on exchanges. So one should evaluate both companies and understand meaning of REIT Company and their business model.
In short these Companies earn money by leasing their commercial spaces. These companies will be good dividend yielding and if price appreciation happens it will be added benefit for the Companies.
Now based on the subscription details you can subscribe for some listing gains. The subscription status does not seem to provide more than 15% to 20% listing gains. You need not carry your position post listing days due to uncertain market.