The IPO will open for subscription on July 27 and will close on July 29 with a price band of the IPO is fixed at Rs274-275. The bidding for public issue by anchor investors will open on July 24.
Mindspace REIT is the second REIT IPO after Embassy Office Parks REIT. The latter company was the country's first REIT to launch Rs4,750cr IPO in March 2019.
Meanwhile, institutional investors like Singapore's sovereign fund GIC, Capital Group, Fullerton Group and Fidelity Group have already committed Rs1,125cr to the company.
According to the company's offer document filed with SEBI, 75% of the net offer (Rs2,531cr) is reserved for the institutional investors while 25% (Rs844cr) is for the non-institutional investors.
As of March 31, 2020, in its filing to Sebi, Mindspace REIT said, "the portfolio is well diversified with 172 tenants and no single tenant contributed more than 7.7% of our Gross Contracted Rentals. Furthermore, as of March 31, 2020, approximately 84.9% of our Gross Contracted Rentals were derived from leading multinational corporations and approximately 39.4% from Fortune 500 companies. Our tenant base comprises a mix of multinational and Indian corporates, including affiliates of Accenture, Qualcomm, BA Continuum, JP Morgan, Amazon, Schlumberger, UBS, Capgemini, Facebook, Barclays and BNY Mellon."
Talking about the Covid-19 impact, the REIT said further, "Since all of our business and operations are located in India, the COVID-19 pandemic affects our operations due to the majority of our tenants limiting their operating staff and hours while others opting to work from home, interruption in construction activities at our under-construction sites due to the government directives to contain the spread of COVID-19, negative impact on the business and financial condition of some of our tenants and their ability to pay rent. While we did not face significant disruptions in our operations from COVID-19 during the financial year ended March 31, 2020, and collected 99.4% of our Gross Contracted Rentals for March 2020, our properties were not fully occupied by the tenants for April and May 2020.
However, the REIT also said, "we maintained and managed our properties throughout the lockdown to ensure business continuity and safety of our tenants. As of May 31, 2020, Committed Occupancy of our Portfolio was 92.4% and In-place Rent across our Portfolio was Rs52.5 psf. We derive 99.4% of our Gross Contracted Rentals from leasing of office premises, and we have not seen a significant decline in the rent receipts during these two months (we have collected 97.8% and 95.2% of our Gross Contracted Rentals for April and May 2020, respectively).