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Embassy Office Parks REIT (Embassy Office Parks) Detail

Mar 18, 2019 - Mar 20, 2019

Incorporated in 2012, Bengaluru based Embassy Office Parks Private Limited is in the business of real estate including renting, selling, buying and operating of leased or self-owned real estate properties. It is a joint venture of the Blackstone Group L.P, a New York City based largest alternative investment firm in the world.

Embassy Office Parks is coming up with a Real Estate Investment Trust (REIT) public issue to raise Rs 5000 Cr. The Embassy REIT is a SEBI registered REIT (as on August 3, 2017) as a real estate investment trust. The investment objective of the Embassy REIT is to own, operate and invest in rent or income generating office real estate and related assets in India in accordance with the REIT Regulations.

Real Estate Investment Trust (REIT) Explained

Under the REIT Regulations Embassy REIT has to invest a minimum 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 and assets located outside India.

The Embassy REIT has been given a long-term rating of [ICRA] AAA by ICRA. The outlook on the assigned rating is 'Stable'.

The competitive strengths of the company are:

• High-quality infrastructure
• Located at leading services hub in India
• Strong relationship base with multinational tenants
• Strategic set up at the top performing markets
• The good quality management system
• Well-known sponsors with local and global expertise
• Top class office properties

Company Financials:

Summary of financial Information (Restated)
Particulars For the year/period ended (in Rs. millions)
31-Dec-18 31-Mar-18 31-Mar-17 31-Mar-16
Total Assets 1,37,790.86 1,35,155.22 1,11,968.97 1,05,490.00
Total Revenue 13,759.83 16,118.00 14,849.20 13,970.16
Profit After Tax 2,851.14 2,569.08 1,770.57 931.83

Objects of the Issue:

The Net Proceeds from the Issue will be utilised towards the following objects:

1. Partial or full repayment or pre-payment of bank/ financial institution debt of certain Asset SPVs and by the Investment Entity;

2. Payment of consideration for acquisition of the Embassy One Assets currently held by EODPL; and

3. General purposes

Embassy Office Parks Details

Issue OpenMar 18, 2019 - Mar 20, 2019
Issue TypeBook Built Issue REIT
Issue Size158,333,200 Eq Shares of Rs 0
(aggregating up to Rs 4,750.00 Cr)
Face ValueRs 0 Per Equity Share
Issue PriceRs 299 - Rs 300 Per Equity Share
Market Lot400 Shares
Min Order Quantity800 Shares
Listing AtBSE, NSE

Embassy Office Parks Tentative Date / Timetable

Bid/Offer Opens OnMar 18, 2019
Bid/Offer Closes OnMar 20, 2019
Finalisation of Basis of AllotmentMar 28, 2019
Initiation of RefundsMar 29, 2019
Credit of Shares to Demat Acct:
IPO Shares Listing Date:Apr 3, 2019

REIT Issue Structure

  • Total Issue Size: Rs 4750 Cr
  • Strategic Investors: 29,208,800 Units (Rs 876 Cr)
  • Public Issue: Rs 3874 (Institutional Investors - 75%, Non Institutional Investors - 25%)

Embassy Office Parks Subscription Status (Bidding Detail)

Embassy Office Parks how much subscribed?

No. of Times Issue Subscribed (BSE + NSE)

As on Date & Time

QIB

NII

Total

Shares Offered

38,866,800

32,389,600

71,256,400

Mar 20, 2019 17:30

2.15x

3.09x

2.57x

Embassy Office Parks Prospectus

Embassy Office Parks Rating

163
3.9
Rating:Rated 3.9 stars

Vote Here ...

Company Contact Information

Embassy Office Parks
Royal Oaks, Embassy Golf Links Business Park,
Off Intermediate Ring Road,
Bengaluru 560 071

Phone: +91803 322 0000
Email: compliance@embassyofficeparks.com
Website: http://www.embassyofficeparks.com

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Embassy Office Parks Review / Comments

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34. ramukaka  Mar 19, 2019 22:25 I Like It. 11 | Report Abuse Reply
If a property of 1 crore market valuation is proposed to be bought by four people each contributing 40 lacs ( total 1.6 cr). will you enter this partnership.
if yes rhen you can subscribe for REIT IPO.
Market value of properties coming under embassy reit is 30100 cr ( As per DRHP document).

Issue size is 4750 cr which will constitute of 10% equity on post equity basis hence total value demanded of REIT as per IPO IS 47500 CR.THAT IS 50% MORE PREMIUN compared to market value itself, even if we forget the fact that valuation report under DRHP was commissioned by embassy group itself and we take valuation on its face value.

Now come to the returns.
As per DRHP report net distributable cash flow(NDCF) is around 2000 cr in 2021. IN 2018 it was around 1400 cr. if we divide 2000/47000 it is 4.25% yield in the year 2021. keep in mind that it is the best case scenario projected by embassy group itself wchich include rent escalation, increase in revenue due to future projected development, re leasing of propertied at significant higher rent and doesn't iclude the interest payment outgo on the proposed upcoming 4000 cr debt issue and remaining debt .

if all these things are removed, and interest outgo on 4000 cr debt and remaining current debt yield wont cross 2% before 2021. and the 50% premium which you are paying on market value will take atleast 6-7 years to recover.
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34.3. HELLBOY II  Mar 25, 2019 14:06 I Like It. | Report Abuse
Hi,

Issue size is 20.05% post issue. no of units offered is just 20.05% and not 10%. I suggest please recheck.
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34.4. Fugit  Mar 25, 2019 17:39 I Like It. | Report Abuse
Confused about the post issue size of ipo, offer document just says "not less than 10%".
HDFC report says post issue no. of units 614 Mn ie RS. 18,420 Cr. Issue size 4,750 Cr, ie ~25%.
@Hellboy posted 20%, and @ramukaka posted 10%.

Entire valuation scenario changes due to this hence confused. HDFC report shows assets in discount to market value itself! due to this.

I spent about few hours trying to figure it out! Anyone else which much clear view?

HDFC link taken from this site itself in review section.

https://www.chittorgarh.com/documents/IPO%20note%20Embassy%20Offer%20Parks%20REIT-HDFC%20Sec%20201903161526118380096.pdf



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33. bansal ashu  Mar 25, 2019 11:23 I Like It. | Report Abuse Reply
allotment status pl.
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32. MOHIT JAIN  Mar 20, 2019 22:37 I Like It. 1 | Report Abuse Reply
miss the issue. but after seeing subscription it looks like it will definitely list at some premium. As qib actively participates(seeing issue size)
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31. Sandeep H S  Mar 20, 2019 12:35 I Like It. 1 | Report Abuse Reply
What is the GMP of Embassy ? why it is not available ?
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31.1. PSR  Mar 20, 2019 15:07 I Like It. 1 | Report Abuse
IPO Mentor IPO Mentor (700+ Posts, 400+ Likes)
Till now, units are not commanding any premium.

But, now onwards there may be little premium considering the subscription figures.
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30. SFJ  Mar 18, 2019 19:06 I Like It. 1 | Report Abuse Reply
Hello,
I tried to apply for the IPO with the ASBA option from both IDBI and BoB. In both the banks, I get an error stating "You cannot bid for more than 2L". The minimum Lot size is 800x300 which is 2.4L. Could you please let me know how I can apply for this IPO from my bank?
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30.2. MITUL DHOLAKIYA  Mar 19, 2019 16:58 I Like It. 2 | Report Abuse
I tried too apply online from BOB Savings account but did not succeed. However I successfully applied from BOB Current account (corporate log in)
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30.3. Krishna Kumaar Kedia  Mar 20, 2019 12:36 I Like It. 3 | Report Abuse
you should apply by entering the bid price manually and not clicking the cut off button. It wont accept if you click cut off button.
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29. medge  Mar 20, 2019 12:09 I Like It. 2 | Report Abuse Reply
Top Contributor Top Contributor (200+ Posts, 200+ Likes)
Subscription is not satisfactory, not giving confidence to subscribe
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28. Bhupender Singh  Mar 20, 2019 10:56 I Like It. 1 | Report Abuse Reply
How can I with draw my application
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28.1. vishwas patil  Mar 20, 2019 11:55 I Like It. | Report Abuse
I think there is no provision for withdrawal
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27. MOTA BHAIS  Mar 20, 2019 04:47 I Like It. 1 | Report Abuse Reply
How can I cancel my application which I have applied through HDFC ASBA for this ipo ???
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27.1. PSR  Mar 20, 2019 06:09 I Like It. | Report Abuse
IPO Mentor IPO Mentor (700+ Posts, 400+ Likes)
Application is in the HNI/NII Category.

Withdrawal may not be permissible.
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26. vikasstocks  Mar 19, 2019 21:21 I Like It. | Report Abuse Reply
MY VIEW IS EMBASSY IS A GOOD FUNDAMENTAL STOCK AND AND ALSO FOR LONG TERM VIEW AND ALSO ONE LISTED COMPANY JIYA ECO BSE 539225 LOOKING GOOD FOR BIG GAINS KEEP ON RADAR TARGET 110 EXPECT SOME BIG INVESTOR MAKE BIG POSITION
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25. Dattarinku  Mar 19, 2019 20:56 I Like It. | Report Abuse Reply
Can one apply for this offline? And also use the asba option?
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24. Lata venkatesh  Mar 19, 2019 09:56 I Like It. 2 | Report Abuse Reply
Those with a portfolio size of more than 10 lacs and want to diversify to some extent this is a good opportunity for them. However this will not give super returns but will give constant reasonable return over a period of time.
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23. yazoo  Mar 19, 2019 01:01 I Like It. 5 | Report Abuse Reply
REIT in commercial premises is a great concept. but my problem is that property prices are up 5X in last 15 yrs thanks to QE after the lehman failure in USA ..QE has been rolled back and us is not pumping a trillion dollars a yr in its economy . interest rates are on the way up.. property market in general as per case shiller index is highly overvalued in India

Demand is not picking up even after Modi ji gave lots of lollypops. Corporates are deleveraging . moving their setups in outskirts to save resources . This is a good bet for higher risk investors with moneybags like R K Damani who can take such risks
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22. MOHIT JAIN  Mar 18, 2019 18:09 I Like It. 2 | Report Abuse Reply
2.4 lakh is a bit risky bet . as irbinvit can be a similar type issue of big size traded at 35 percent discount against its issue size. lets see how hni /qib responds. 1-2 rupees minus opening is even a bit risky as lot size is too big.
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21. DIPAQ  Mar 18, 2019 16:14 I Like It. | Report Abuse Reply
In ReIT when we get our principal amount i.g.Rs.300.00 back or otherwise we have to sale in market at market price ?
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20. Carn Mohan  Mar 18, 2019 15:29 I Like It. 1 | Report Abuse Reply
IPO Mentor IPO Mentor (600+ Posts, 200+ Likes)
It is not a equity shares, I think it is bond and selling in NSE BSE very difficult.
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19. 👉 IPO Adhyadesh 💃  Mar 15, 2019 22:50 I Like It. 9 | Report Abuse Reply
IPO Mentor IPO Mentor (500+ Posts, 1200+ Likes)
MSTC - Only 225 cr. IPO.Date extend for subscription.
REIT - 4750 cr. IPO.Will remain undersubscribe.

MSTC - Only 11,000 rs. application.
REITs - 2,40,000 rs. application.Double than SME IPOs.

Another flop ipo.
Days of all good IPOs have gone.
people lost faith in stock market.
only Index making new highs not shares.
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19.1. RBA  Mar 18, 2019 12:38 I Like It. 3 | Report Abuse
REIT is not a flop but since this is first time for many investors, they are playing wait and watch. One more reason for poor subscriptionof REIT may be IPO lot is 2 lakh but market lot is 1 lakh. So the risk is lower in secondary market
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19.2. assetcreators  Mar 18, 2019 13:54 I Like It. 1 | Report Abuse
Issue already subscribed by .75% of the issue
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18. papon  Mar 17, 2019 14:29 I Like It. 1 | Report Abuse Reply
Why & how can reviews of HDFC Securities has so many typing mistake. Very unpleasant to read the article. Expection is high with HDFC pedigree
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17. RAJAKUMAR  Mar 16, 2019 08:38 I Like It. | Report Abuse Reply
IPO Mentor IPO Mentor (900+ Posts, 500+ Likes)
Dear Small
There are 59 Anchor investor. Mostly FII.
Ramesh Damani invested in this counter through trust.
Anchor list is very good.
I am going to apply if FII subscribes well in the main IPO time.
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16. vishwas patil  Mar 14, 2019 12:38 I Like It. 1 | Report Abuse Reply
will get 8 to 9% return yearly and around 3 to 4% annual appreciation. better than fd and debt mutual fund
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16.4. vishwas patil  Mar 15, 2019 14:00 I Like It. | Report Abuse
You can check with chittorgarh team. I am not active on this forum since a long
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16.5. traderji  Mar 15, 2019 16:09 I Like It. 4 | Report Abuse
Can you please share any earlier post if you are 8 years old in this group.Because we can't see any other post except this REIT.
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15. Earthking  Mar 15, 2019 14:47 I Like It. 1 | Report Abuse Reply
Just to understand will it have any lock in period if I get allotted or like normal mainline IPO ??? Also listing duration ???



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