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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 300
(aggregating up to Rs 4,750.00 Cr)
Face ValueRs 300 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 ...

Embassy Office Parks Listing Date

  •   ›  Listing Date: Monday, April 1, 2019
  •   ›  BSE Script Code: 542602
  •   ›  NSE Symbol: EMBASSY
  •   ›  Listing In:
  •   ›  ISIN: INE041025011
  •   ›  Issue Price: Rs 300 Per Equity Share
  •   ›  Face Value: Rs 300 Per Equity Share

Listing Day Trading Information

.
Issue Price
Open
Low
High
Last Trade
Volume
BSE
Rs 300.00
Rs 300.00
Rs 300.00
Rs 324.50
Rs 314.10
278,800
NSE
Rs 300.00
Rs 308.00
Rs 308.00
Rs 324.80
Rs 314.67
2,903,200

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

avatar
47. mahadikd  Apr 4, 2019 12:12 I Like It. | Report Abuse Reply
Looks like unsatisfied retail buyers are taking the price to a new high every day. All purchasing in lots of 400 (minimum lot size, and less than IPO size). It would be interesting to see if the trend continues.
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47.1. mahadikd  Apr 30, 2019 17:49 I Like It. | Report Abuse
Buying spree seems to be fading finally.. wonder what is the market depth like. Anyone here has access to NSE L2 data?
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46. RAJAKUMAR  Mar 16, 2019 08:38 I Like It. | Report Abuse Reply
IPO Guru IPO Guru (1000+ Posts, 600+ 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.
avatar
46.1. Aniketiaf  Apr 4, 2019 21:13 I Like It. | Report Abuse
IPO Mentor IPO Mentor (800+ Posts, 4600+ Likes)
@ RAJAKUMAR,
Sold or kept ?



avatar
45. Aniketiaf  Apr 4, 2019 21:06 I Like It. 4 | Report Abuse Reply
IPO Mentor IPO Mentor (800+ Posts, 4600+ Likes)
Sold both lots @ 325 as money required for polycab IPO.
Received a markable profit by IPO after Hdfc AMC .
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44. shubhampune  Mar 28, 2019 11:34 I Like It. 1 | Report Abuse Reply
as Usual no allocation 0/1 , whenever its Karvy no allocation for single bid application.
avatar
44.1. mahadikd  Apr 4, 2019 12:14 I Like It. | Report Abuse
Some people above have got 1/1.
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43. Fugit  Mar 28, 2019 17:10 I Like It. | Report Abuse Reply
Got allotment, applied for only one lot.
Anyone applied for multiple lots and got the allotment for multiple lots? Just was wondering.
avatar
43.1. mahadikd  Apr 4, 2019 12:14 I Like It. | Report Abuse
Applied for one lot, did not get any. Just like some others below. Now, I'm not buying at 320.
avatar
42. Fugit  Apr 1, 2019 15:46 I Like It. | Report Abuse Reply
First day closing at 314, high 324.
Anyone buying more at these levels or selling?
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41. DownriteVJ  Apr 1, 2019 10:57 I Like It. | Report Abuse Reply
IPO Guru IPO Guru (1100+ Posts, 1000+ Likes)
Listed at 308. Congrats to the lucky guyz.
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40. vatsanmb  Mar 29, 2019 08:48 I Like It. | Report Abuse Reply
Ya, that is for retail category. What about NII category. Will that also follow same process?
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39. MITUL DHOLAKIYA  Mar 28, 2019 17:49 I Like It. | Report Abuse Reply
Allotted 800 shares.
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38. vatsanmb  Mar 28, 2019 15:25 I Like It. | Report Abuse Reply
When applying under NII category, whether allotment is done per Minimum lot or is it based on proportional to the amount applied?
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38.1. Ajax  Mar 28, 2019 16:38 I Like It. 1 | Report Abuse
On Minimum lot. When IPO is oversubscribed, Allotment is usually done such that at least everyone with valid application gets one minimum lot. When IPO is undersubscribed as many lots which you have applied will be allocated, the remaining lots will be paid by the underwriter [i.e you won't get additional lots at same price ;) ]
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37. Ajax  Mar 28, 2019 15:23 I Like It. 1 | Report Abuse Reply
Embassy REIT IPO will list ahead of schedule on April 1

Read more at:
//economictimes.indiatimes.com/articleshow/68607623.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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36. PSR  Mar 28, 2019 11:35 I Like It. 2 | Report Abuse Reply
IPO Mentor IPO Mentor (700+ Posts, 400+ Likes)
Got Allotment.

Happy.

Propose to keep it for long term as a seperate class of asset.
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35. Nimesh Ariwala  Mar 27, 2019 14:41 I Like It. 1 | Report Abuse Reply
28/03/2019 Allotment Date
Listing 01/04/2019 (Note Done)
Good For Long Term.......
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35.1. Lata venkatesh  Mar 27, 2019 19:55 I Like It. | Report Abuse
Amount debited by ICICI Bank
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34. bansal ashu  Mar 27, 2019 10:06 I Like It. | Report Abuse Reply
gmp of current ipo
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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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33.1. PSR  Mar 27, 2019 05:52 I Like It. | Report Abuse
IPO Mentor IPO Mentor (700+ Posts, 400+ Likes)
May be by Today Evening.
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32. ramukaka  Mar 19, 2019 22:25 I Like It. 13 | 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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32.4. 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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32.5. ramukaka  Mar 26, 2019 18:07 I Like It. | Report Abuse
My analysis was based on offer document of not less than 10%. Finally it seems post equity issue will be around 20%
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31. 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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30. 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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30.1. 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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29. 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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29.2. 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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29.3. 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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28. medge  Mar 20, 2019 12:09 I Like It. 2 | Report Abuse Reply
Top Contributor Top Contributor (300+ Posts, 300+ Likes)
Subscription is not satisfactory, not giving confidence to subscribe



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