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 300 (aggregating up to Rs 4,750.00 Cr)
Face Value	Rs 300 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:

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

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
   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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Useful Articles

Embassy Office Parks Review / Comments

47. Aniketiaf Apr 4, 2019 21:06

4 |

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 .

46. shubhampune Mar 28, 2019 11:34

1 |

as Usual no allocation 0/1 , whenever its Karvy no allocation for single bid application.

46.1. mahadikd Apr 4, 2019 12:14

Some people above have got 1/1.

45. Fugit Mar 28, 2019 17:10

Got allotment, applied for only one lot.
Anyone applied for multiple lots and got the allotment for multiple lots? Just was wondering.

45.1. mahadikd Apr 4, 2019 12:14

Applied for one lot, did not get any. Just like some others below. Now, I'm not buying at 320.

44. mahadikd Apr 4, 2019 12:12

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.

44.1. mahadikd Apr 30, 2019 17:49

Buying spree seems to be fading finally.. wonder what is the market depth like. Anyone here has access to NSE L2 data?

43. Fugit Apr 1, 2019 15:46

First day closing at 314, high 324.
Anyone buying more at these levels or selling?

42. DownriteVJ Apr 1, 2019 10:57

IPO Guru (1100+ Posts, 1000+ Likes)

Listed at 308. Congrats to the lucky guyz.

41. vatsanmb Mar 29, 2019 08:48

Ya, that is for retail category. What about NII category. Will that also follow same process?

40. MITUL DHOLAKIYA Mar 28, 2019 17:49

Allotted 800 shares.

39. vatsanmb Mar 28, 2019 15:25

When applying under NII category, whether allotment is done per Minimum lot or is it based on proportional to the amount applied?

39.1. Ajax Mar 28, 2019 16:38

1 |

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 ;) ]

38. Ajax Mar 28, 2019 15:23

1 |

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

37. PSR Mar 28, 2019 11:35

2 |

IPO Mentor (700+ Posts, 400+ Likes)

Got Allotment.

Happy.

Propose to keep it for long term as a seperate class of asset.

36. Nimesh Ariwala Mar 27, 2019 14:41

1 |

28/03/2019 Allotment Date
Listing 01/04/2019 (Note Done)
Good For Long Term.......

36.1. Lata venkatesh Mar 27, 2019 19:55

Amount debited by ICICI Bank

35. bansal ashu Mar 27, 2019 10:06

gmp of current ipo

34. bansal ashu Mar 25, 2019 11:23

allotment status pl.

34.1. PSR Mar 27, 2019 05:52

IPO Mentor (700+ Posts, 400+ Likes)

May be by Today Evening.

33. 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 (3 replies)

33.4. 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

33.5. ramukaka Mar 26, 2019 18:07

My analysis was based on offer document of not less than 10%. Finally it seems post equity issue will be around 20%

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 (300+ Posts, 400+ 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

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