The company Mindspace Business Parks REIT has a high-quality office portfolio in Mumbai, Hyderabad, Pune, and Chennai. The business parks in Mumbai are Mindspace Airoli East Business Park, Mindspace Airoli West Business Park, Paradigm Mindspace Malad, and The Square, BKC(2). The company is about to launch its IPO this month. So today I come with the Mindspace REIT IPO Review.
Mindspace REIT IPO FAQs
Mindspace REIT is a main-board REIT of equity shares of the face value of ₹ aggregating up to ₹4,500.00 Crores. The issue is priced at ₹274 to ₹275 per equity share. The minimum order quantity is 200 Shares.
The Mindspace REIT opens on Jul 27, 2020 and closes on Jul 29, 2020
Mindspace REIT lot size is 200 Shares and the minimum order quantity is 200 Shares.
The finalization of Basis of Allotment for Mindspace REIT will be done on Aug 6, 2020, and the allotted shares will be credited to your Demat account by Aug 7, 2020
Mindspace REIT IPO Review Issue Details
| IPO Open: | 27 July 2020 |
| IPO Close: | 29 July 2020 |
| IPO Size: | Approx ₹4500 Crore |
| Face Value: | ₹- Per Equity Share |
| Price Band: | ₹274 – ₹275 Per Share |
| Listing on: | BSE & NSE |
| Retail Portion: | 25% |
| Equity: | 200 Shares |
| Lot Size: | Minimum 200 shares, Maximum 500 |
| Minimum amount | 55000 |
| Maximum amount | 165000 |
| Draft red herring prospectus |
Mindspace REIT IPO Allotment & Listing:
| Basis of Allotment: | 6 August 2020 |
| Refunds: | 7 August 2020 |
| Credit to Demat Account: | 10 August 2020 |
| Listing Date: | 12 August 2020 |
About the Company
The properties in the Pune include Commerzone Yerwada Business Park, Gera Commerzone Kharadi Business Park, and The Square, Nagar Road. The Chennai property of the company is Commerzone Porur. And, the office parks in Hydrabad are Commerzone Pocharam and Mindspace Madhapur.
- The total leasable area of Mindspace Business Parks are 12.1 msf, 11.6 msf, 5.0 msf and 0.8 msf in Mumbai, Hyderabad, Pune and Chennai, respectively.
- With 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 is spread across Hyderabad, Chennai, and Mumbai in a 3.6 m sq ft area.
Real Estate Investment Trust (REIT)
- Under the REIT Regulations Mindspace REIT has to invest a minimum of 80% of the value of its assets in completed and rent and/ or income-generating properties.
- REIT Regulations also impose restrictions on certain investments including investments in vacant land, agricultural land, or mortgages other than mortgage-backed securities and assets located outside India.
- As per REIT Regulations, the portfolio of the Mindspace REIT is required to be maintained for a period of minimum 3-years from the date of purchase or completion.
Objects of the Issue:
The proceeds will be utilised towards the following objects:
1. Partial or full pre-payment or scheduled repayment of certain debt facilities of the Asset SPVs availed
from banks/financial institutions (including any accrued interest and any applicable penalties/ premium);
2. Purchase of NCRPS of MBPPL; and
3. General purposes
Competitive Strengths
1. Diversified and quality tenant base
2. Strong industry fundamentals
3. Experienced management team with KRC group support
4. Stable cash flows
Company Promoters:
Cape Trading LLP and Anbee Constructions LLP are the promoters of the company.
Company Financials:
| Particulars | For the year/period ended (₹ in Million) | |||
|---|---|---|---|---|
| 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 |
Mindspace REIT IPO Review
So, the above chart contains the financial details of Prince Pipes. It shows the company is making a moderate profit throughout the years. Now, let us have a look at the prospectus of the company. Its EPS (earnings per share) stands at 8.17 (as of FY19 basic and diluted). The company has not revealed the PE (price to earnings) ratio. It’s RoNW (Return on Net Worth) and NAV/share are 23.08 and 35.37 respectively.
So based on these available data, Mindspace REIT IPO Review carries a NEUTRAL view. It is advisable to avoid the IPO.
