Mindspace Business Parks REIT (Mindspace REIT) Detailed Review - Ajay Singh Chauhan

Mindspace Business Parks REIT (Mindspace REIT) Detailed Review

Mindspace Business Parks REIT has a 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 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) Explained

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.

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:

ParticularsFor the year/period ended (₹ in Million)
31-Mar-2031-Mar-1931-Mar-1831-Mar-17
Total Assets1,12,22491,43784,73881,293
Total Revenue20,26216,79715,02214,354
Profit After Tax5,1395,1541,6102,313

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

Mindspace REIT Details

IPO DateJul 27, 2020 – Jul 29, 2020
Issue TypeBook Built Issue REIT
Issue Size[.] Eq Shares of ₹
(aggregating up to ₹4,500.00 Cr)
Fresh Issue[.] Eq Shares of ₹
(aggregating up to ₹1,000.00 Cr)
Offer for Sale[.] Eq Shares of ₹
(aggregating up to ₹3,500.00 Cr)
Face Value₹ per equity share
IPO Price₹274 to ₹275 per equity share
Market Lot200 Shares
Min Order Quantity200 Shares
Listing AtBSE, NSE
Market Cap (₹ Cr.)23675

Mindspace REIT Tentative Date / Timetable

Bid/Offer Opens OnJul 27, 2020
Bid/Offer Closes OnJul 29, 2020
Finalisation of Basis of AllotmentAug 6, 2020
Initiation of RefundsAug 7, 2020
Credit of Shares to Demat AcctAug 7, 2020
IPO Shares Listing DateAug 12, 2020

Mindspace REIT Lot Size and Price (Retail)

ApplicationLotsSharesAmount (Cut-off)
Minimum1200₹55,000
Maximum

Net Issue

  • Institutional Investors: 75% of the net offer
  • Non Institutional Investors: 25% of the net offer

Mindspace REIT Prospectus

Mindspace REIT Rating

3543.9Rating:

Rated 3.9 stars

Mindspace REIT Reviews / Ratings

  • Ambit Capital Pvt Ltd – None
  • Axis Capital – Other
  • Dilip Davda – Other
  • HDFC Securities Limited – Other
  • IIFL Securities – None
  • IIFL Wealth – Other
  • JM Financial Institutional Securities – Other

Company Contact Information

Mindspace Business Parks
Raheja Tower, Level 8, Block ‘G’,
C-30, Bandra Kurla Complex,
Mumbai – 400 051

Phone: +91 2656 4000
Email: [email protected]
Website: https://www.mindspacereit.com/

Mindspace REIT Registrar

KFin Technologies Private Limited
   Selenium, Tower B, Plot No. 31 & 32
   Financial District, Nanakramguda, Serilingampally,
   Hyderabad 500 032, Rangareddi Telangana, India

Phone: +91 40 6716 2222
Email: [email protected]
Website: http://www.kfintech.com

Mindspace REIT Lead Manager(s)

  1. Ambit Private Limited
  2. Axis Capital Limited
  3. BoA Merrill Lynch
  4. Citigroup Global Markets India Private Limited
  5. CLSA India Private Limited
  6. HDFC Bank Limited
  7. ICICI Securities Limited
  8. IDFC Bank Limited
  9. JM Financial Consultants Private Limited
  10. Kotak Mahindra Capital Company Limited
  11. Morgan Stanley India Company Pvt Ltd
  12. Nomura Financial Advisory And Securities (India) Pvt Ltd
  13. UBS Securities India Private Limited

Lead Manager Reports

  • Lead Manager Performance Tracker
  • List of IPO’s handled by a Lead Manager

Mindspace REIT FAQs

  • What is Mindspace REIT?
  • 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 REIT opens on Jul 27, 2020, and closes on Jul 29, 2020.KFin Technologies Private Limited is the registrar for the REIT. The shares are proposed to be listed on BSE, NSE.
  • How to apply in Mindspace REIT through Zerodha?Zerodha customers cannot apply online in Mindspace REIT using UPI as a payment gateway. UPI is not an option in Mindspace REIT public issue. Zerodha customers have to apply through net-banking.Steps to apply in Mindspace REIT through Zerodha
    1. Login to your net-banking account.
    2. Go to the IPO section.
    3. Go to the ‘Mindspace REIT’ row and click the ‘Apply’ button.
    4. Enter the Quantity and Price.
    5. ‘Submit’ IPO application form.Bank wise detail steps to apply in Mindspace REIT
    • SBI Bank
    • ICICI Bank
    • HDFC Bank
    • Kotak Bank
    • Axis Bank
  • When Mindspace REIT will open?The Mindspace REIT opens on Jul 27, 2020 and closes on Jul 29, 2020.
  • What is the lot size of Mindspace REIT?Mindspace REIT lot size is 200 Shares and the minimum order quantity is 200 Shares.
  • How to apply for Mindspace REIT?You can apply in Mindspace REIT online using ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. Note that UPI is not an option in Mindspace REIT public issue. Read more detail about apply IPO online through ICICI Bank, HDFC Bank, SBI Bank, Kotak Bank and Axis Bank.
  • When Mindspace REIT allotment?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. Check the Mindspace REIT allotment status.
  • When is Mindspace REIT listing date?The Mindspace REIT listing date is not yet announced. The tentative date of Mindspace REIT listing is Aug 12, 2020.

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