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 Open	Mar 18, 2019 - Mar 20, 2019
Issue Type	Book Built Issue REIT
Issue Size	158,333,200 Eq Shares of Rs 0 (aggregating up to Rs 4,750.00 Cr)
Face Value	Rs 0 Per Equity Share
Issue Price	Rs 299 - Rs 300 Per Equity Share
Market Lot	400 Shares
Min Order Quantity	800 Shares
Listing At	BSE, NSE

Embassy Office Parks Tentative Date / Timetable

Bid/Offer Opens On	Mar 18, 2019
Bid/Offer Closes On	Mar 20, 2019
Finalisation of Basis of Allotment	Mar 28, 2019
Initiation of Refunds	Mar 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

› Draft Prospectus
› Red Herring Prospectus

Embassy Office Parks Rating

163

3.9

Rating:

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Embassy Office Parks Reviews / Ratings

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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

Embassy Office Parks Registrar

Karvy Computershare Private Limited   »  Report
   Karvy Registry House, 8-2-596, St. No. 1,
   Banjara Hills, Hyderabad - 500 034
   Andhra Pradesh, India

Phone: +91-40-23312454
Email: einward.ris@karvy.com
Website: https://karisma.karvy.com/

Embassy Office Parks Lead Manager(s)

Lead Manager Reports

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Embassy Office Parks Review / Comments

34. ramukaka Mar 19, 2019 22:25

11 |

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.

Load more comments (2 replies)

34.3. HELLBOY II Mar 25, 2019 14:06

Hi,

Issue size is 20.05% post issue. no of units offered is just 20.05% and not 10%. I suggest please recheck.

34.4. Fugit Mar 25, 2019 17:39

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

33. bansal ashu Mar 25, 2019 11:23

allotment status pl.

32. MOHIT JAIN Mar 20, 2019 22:37

1 |

miss the issue. but after seeing subscription it looks like it will definitely list at some premium. As qib actively participates(seeing issue size)

31. Sandeep H S Mar 20, 2019 12:35

1 |

What is the GMP of Embassy ? why it is not available ?

31.1. PSR Mar 20, 2019 15:07

1 |

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.

30. SFJ Mar 18, 2019 19:06

1 |

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?

Load more comments (1 replies)

30.2. MITUL DHOLAKIYA Mar 19, 2019 16:58

2 |

I tried too apply online from BOB Savings account but did not succeed. However I successfully applied from BOB Current account (corporate log in)

30.3. Krishna Kumaar Kedia Mar 20, 2019 12:36

3 |

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.

29. medge Mar 20, 2019 12:09

2 |

Top Contributor (200+ Posts, 200+ Likes)

Subscription is not satisfactory, not giving confidence to subscribe

28. Bhupender Singh Mar 20, 2019 10:56

1 |

How can I with draw my application

28.1. vishwas patil Mar 20, 2019 11:55

I think there is no provision for withdrawal

27. MOTA BHAIS Mar 20, 2019 04:47

1 |

How can I cancel my application which I have applied through HDFC ASBA for this ipo ???

27.1. PSR Mar 20, 2019 06:09

IPO Mentor (700+ Posts, 400+ Likes)

Application is in the HNI/NII Category.

Withdrawal may not be permissible.

26. vikasstocks Mar 19, 2019 21:21

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

25. Dattarinku Mar 19, 2019 20:56

Can one apply for this offline? And also use the asba option?

24. Lata venkatesh Mar 19, 2019 09:56

2 |

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.

23. yazoo Mar 19, 2019 01:01

5 |

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

22. MOHIT JAIN Mar 18, 2019 18:09

2 |

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.

21. DIPAQ Mar 18, 2019 16:14

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 ?

20. Carn Mohan Mar 18, 2019 15:29

1 |

IPO Mentor (600+ Posts, 200+ Likes)

It is not a equity shares, I think it is bond and selling in NSE BSE very difficult.

19. 👉 IPO Adhyadesh 💃 Mar 15, 2019 22:50

9 |

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.

19.1. RBA Mar 18, 2019 12:38

3 |

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

19.2. assetcreators Mar 18, 2019 13:54

1 |

Issue already subscribed by .75% of the issue

18. papon Mar 17, 2019 14:29

1 |

Why & how can reviews of HDFC Securities has so many typing mistake. Very unpleasant to read the article. Expection is high with HDFC pedigree

17. RAJAKUMAR Mar 16, 2019 08:38

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.

16. vishwas patil Mar 14, 2019 12:38

1 |

will get 8 to 9% return yearly and around 3 to 4% annual appreciation. better than fd and debt mutual fund

Load more comments (3 replies)

16.4. vishwas patil Mar 15, 2019 14:00

You can check with chittorgarh team. I am not active on this forum since a long

16.5. traderji Mar 15, 2019 16:09

4 |

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.

15. Earthking Mar 15, 2019 14:47

1 |

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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