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Nexus Select Trust REIT IPO – Price, Lot size, Open date, GMP & Review

Written by - Marisha Bhatt

May 8, 2023 7 minutes

In stark contrast to 2021 and 2022, 2023 has seen very limited IPOs in the first 5 months of the year which shows that companies are treading cautiously in the face of global uncertainty. The newest IPO to come into the market is from the real estate sector and a company that is a first of its kind in India. 

Nexus Select Trust REIT IPO will open for subscription on 9th May 2023 and will close on 11th May 2023.

Here are all the essential details of Nexus Select Trust REIT IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.

Read More: REITs in India – All that you need to know

IPO Details 

The key details of the Nexus Select Trust REIT IPO are as under. 

  1. IPO Size 

The size of the IPO and different categories of the issue are:

IPO Opening Date9th May 2023 
IPO Closing Date11th May 2023
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRe. 1 per share
IPO Price BandRs. 95 – Rs. 100 per share
IPO SizeRs. 3,200 crores 
Offer For SaleRs. 1,800 crores 
Fresh IssueRs. 1,400 crores
  1. IPO Dates 

The important dates for the Nexus Select Trust REIT IPO are highlighted below:

Opening date9th May 2023
Closing Date11th May2023
Allotment date16th May 2023
Refund Date17th May 2023
Share Credit Date18th May 2023
Listing Date19th May 2023
  1. IPO Lot Sizes 

Investors can subscribe to the shares of Nexus Select Trust REIT IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below: 

Investments in lots Minimum – 1 lotMaximum – 13 lots
Investment amount Minimum – Rs. 14,250Maximum – Rs. 1,95,000
Shares Minimum – 150Maximum – 1950
  1. IPO Reservation

Since there is no ‘retail’ category in this IPO, retail investors can use the NII category to apply for this IPO. Here are the percentage reservation details of each of the categories:

Category of InvestorReservation Percentage
QIB (Qualified Institutional Buyers)75%
NII (Non-Institutional Bidders)25%

Nexus Select Trust REIT IPO Objectives

This IPO is a mix of Offer for Sale and Fresh Issue. The proceeds from the Offer for sale will not be received by the company but the proceeds from the fresh issue will be utilised in the following manner. 

  • Partial or full repayment or prepayment and redemption of the certain financial indebtedness of the Asset SPVs and the Investment Entity.
  • Proceeds will also be used for the acquisition of stake and redemption of debt securities in certain Asset SPVs
  • Balance proceeds will be utilised for general corporate purposes. 

Top things to know about Nexus Select Trust REIT IPO

Nexus Select Trust REIT owns a top-quality portfolio of assets that are essential consumption infrastructure for India’s growing middle class. This makes them India’s leading consumption centre platform, and have the proud badge to be the first publicly listed consumption centre REIT in the country. 

Their portfolio consists of 17 Grade A urban consumption centres, three office assets, and two complementary hotel assets, totaling a leasable area of 9.2 msf and 354 keys, respectively, as of December 31, 2022. These assets are strategically located in 14 leading cities in India with a tenant base of 1,044 domestic and international brands with 2,893 stores and constituting 30% of India’s total discretionary retail spending in FY20. 

Furthermore, their portfolio has an average population CAGR that is 226 bps higher than the national average from the financial years 2011 to 2021. Many of their assets are market leaders in their respective submarkets, providing shopping, entertainment, and social destinations for their respective catchments, according to the CBRE report by Completed Area.

Financials of the company

Nexus Select Trust REIT financials are given in the table below:

Year Total Assets (Rs. In crores)Operating Revenue (Rs. In crores)Profit after tax (Rs. In crores)Investment Property (Rs. In crores)

(Source: RHP)

Strengths of the company

Some of the key strengths of Nexus Select Trust REIT that investors can take note of are:

Business model The company has the merit of being the leading consumption centre with high-quality assets and is strategically located in prime in-fill locations with high barriers to entry.They have a diverse presence in 14 large cities that essentially drive the consumption in the country with a footfall of 130 million approximately. The company has a high tenant base of domestic and international brands and approximately 1.3 billion in tenant sales.
Management team and other assetsNexus has a fully integrated platform and the backing of a highly skilled management team. They also have the benefit of proprietary insights and access to industry-leading technology initiatives 

Risks of investment

Here are some of the risks that investors of Nexus Select Trust REIT IPO should know:

Business viability and profitabilityOne of the biggest concerns for the company is the high concentration of revenue from a limited number of large tenantsThere has also been a decline in the footfall in their urban consumption centres along with the low occupancy and reduced rent levels not only in their UCCs but also in hotels and commercial space. 
Other concernsOther risks include the illiquidity of real estate investments and the weakening real estate sector in the country.There is also the risk of non-renewal of non-replacement, default, early termination, regulatory or legal proceeding that can have a direct impact on its revenues and profitability

What is the Grey Market Premium (GMP) of Nexus Select Trust REIT IPO?

As of May 8th, 2023, the grey market premium for the shares of Nexus Select Trust REIT is approximately Rs. 5 as per market observers.

Should you apply for Nexus Select Trust REIT IPO?

While there has been a decline in the real estate sector in the country, Indian REITs have performed significantly better than their US counterparts by delivering an IRR of 13.4% approximately which is higher than the latter by 2662 bps. It is also viewed that there will be a continuing demand for Grade A retail assets which will be beneficial for the company as it is dominant in this segment. Although there was a dip in its revenues and profit after tax in the past years, there has also been an uptick in the same showing the potential for further growth backed by the increased overall consumption in Indian markets. Therefore, investors can consider this IPO with a medium to long-term investment horizon as well as a source of diversification for their investment portfolio.  

How to apply for Nexus Select Trust REIT IPO?

Investors can invest in this IPO through the Fisdom app.

Nexus Select Trust REIT IPO FAQs

1. How much of India’s total discretionary retail spending in FY 20 was catered by Nexus Select Trust?

Nexus Select Trust has its presence in 14 cities in India (including Delhi, Navi Mumbai, Bengaluru, Pune, Hyderabad, and Chennai) and constituted approximately 30% of India’s total discretionary retail spending in FY20.

2. What is a REIT?

A REIT (Real Estate Investment Trust) is a company that owns and manages income-producing real estate, like apartments or shopping centres. When investors buy shares, they own a portion of the real estate portfolio and receive dividends from the rental income. REITs distribute most of their taxable income to shareholders, making them a good option for those seeking regular income. Investing in a REIT can also offer diversification as assets are spread across different properties and locations.

3. What is the proportion of the Minimum Guaranteed Rental of Nexus Select Trust REIT ?

95.5% of the tenant leases of Nexus Select Trust REITS provide for the Minimum Guaranteed Rental as of December 2022 and they have rent escalation clauses with a typical increase of approximately 12% to 15% over a period of 3-5 years.

4. Do I need a Demat account to apply for Nexus Select Trust REIT IPO?

Yes, to apply for any IPO, you need to have a Demat account. To open a Demat account today, you can download the Fisdom app on your smartphone. 

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