Nexus IPO - Check Grey Market Premium, Allotment & Other details
Nexus Select Trust REIT is the owner of the largest platform of high-quality assets used as the primary consumer infrastructure for India's expanding middle class. The owner of is Nexus Select Trust. Being listed on the stock exchanges makes it India's first consumption-centered REIT. As of December 31, 2022, their portfolio had 1,044 domestic and foreign brands with 2,893 outlets, and it was well-diversified across various cities.
The largest portfolio of consumption centers in India is owned by Nexus REIT, and it would be challenging to replicate a platform with comparable scale, quality, and geographic diversity given the scarcity of prime city centre land parcels, the lengthy development times, and the specialized skills necessary for creating, stabilizing, and managing comparable assets.
Nexus Select Mall Management Private Limited, company incorporated in India is the Manager of the Nexus Select Trust
Total Issue Size: - Rs. 3,200 Crores
Offer for Sale: - Rs. 1,800 Crores
Fresh Issue: - 1,400 Crores
🔸Objectives of IPO Issues
The details of Objectives of IPO are as follows:
Partial or full repayment or prepayment and redemption of the certain financial indebtedness of the Asset SPVs and the Investment Entity
Acquisition of stake and redemption of debt securities in certain Asset SPVs
Other general purposes
🔸Issue Date of Nexus IPO
The opening date of Nexus IPO, closing date and other relevant dates are as follows:
Event | Tentative Date |
Opening Date | May 9, 2023 |
Closing Date | May 11, 2023 |
Basis of Allotment | May 16, 2023 |
Initiation of Refunds | May 17, 2023 |
Credit of Shares to Demat | May 18, 2023 |
Listing Date | May 19, 2023 |
UPI Mandate Confirmation Cut-Off Time | 5.00 PM on the issue closing day |
🔸Price Band of Nexus IPO
The Total IPO Size is 3,200 Crore. The company set its IPO price at 95-100 Rs Per Share. Basically, there are two basic categories in Nexus Select Trust REIT Subscription 1) Qualified Institutional Buyers 2) Non-Institutional Investors.
Minimum bid (lot size): 150 Shares
IPO Price per share: Rs 95-100
Listing On: NSE, BSE
Grey Market Premium (GMP): 3% as on 17th May 2023 (only for information)
🔸Strengths of Nexus Company
The strength of the company are as follows:
Diversified Portfolio – The portfolio comprises 17 best-in-class Grade A urban consumption canters with a total Leasable Area of 9.2 metre sq.f, two complementary hotel assets (354 keys) and three office assets (1.3 metre sq.f.) as of December 31, 2022. Its assets are strategically located across 14 leading cities in India, which constituted 30% of India’s total discretionary retail spending in Financial Year 2020.
Financial Turnaround – The trust faced losses during the years of the pandemic. However, for December 2022 ended 9 months it has turned profitable again. For 9 month of Financial Year 2023, the company reported a net profit of Rs. 257 Crores surpassing the pre-covid year Financial Year 2022 net profit of Rs. 207 Crores.
Cash Flow Distribution - The Manager will declare and distribute at least 90% of the net distributable cash flows of the Nexus Select Trust as distributions (“REIT Distributions”) to the unitholders.
Stable Cash Flow With Contracted Rent Escalations – It usually enters into three to nine-year leases for in-line tenants, nine to twenty-five-year leases for anchor tenants and five to nine-year leases for office tenants.
High Rental Yield Opportunities – It has a high Minimum Guaranteed (MG) Rentals and Turnover Rental (TR) model. MG provides stability to rental revenue, whereas Turnover Rental arrangements allow them to participate in the upside of growth in their tenants’ sales.
🔸Risk with the Nexus Company
The RHP states that after the IPO, they intend to obtain external debt financing to repay a portion of the debt of the Portfolio and to finance the Portfolio’s business and financing requirements. Another wave of the pandemic poses a major threat as not only will the customer purchases shelve but also firms will refrain from expanding and rental might slash.
Please note Nexus Select is not a company it is a Real Estate Investment Trust (REIT).
REITs take money from others, issue shares and invest the money in Real Estate Projects.
Apply for this IPO only if you are interested in Real Estate (Max allocation shouldn't be more than 10% of total portfolio)
Link for checking IPO Allotment Status of Nexus Select Trust IPO:- https://ris.kfintech.com/ipostatus/
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