Nexus Select Trust is the new REIT listing on the markets today and it got listed as expected – mildly positive. As against the IPO price of Rs.100, the issue got listed on the BSE at Rs.102.27 and is now trading at Rs.103.81.
The IPO got a mild response, subscribing 5.45x, with QIBs portion getting subscribed 5.06x and HNIs portion at 6.6x.
In our IPO Analysis, our verdict was - Nexus is a play on India’s middle-class consumption story and offers better yield than the listed office park REITs. Sponsor Blackstone is well-known as one of India’s largest commercial real estate owner with track record of rewarding unitholders in Embassy and Mindspace REITs. Moreover, Nexus REIT is structured to be tax-efficient for unit-holders. Those looking for debt investment, can consider this issue for its superior post-tax return vis-à-vis fixed deposit.