Mindspace Business Parks REIT Message Board (Page 14)

Face value Rs. 10 per unit

What is face value?

Must apply with full force by using SINGLE ACCOUNT for better allotment chances

Yes, go for it....

@Team chittorgarh / experts

Please explain allotment process

@phrao, It's proportionate allotment. let me try to explain.

Let's assume that NII/HNI subscription is 10X at the end of the day. Now, to get firm allotment, you must have applied at least 10 lots from the single account. Let's see few more examples to understand how it works. In the following list, we'll see different lots applied per account and what they will get considering NII/HNI 10X.

30 Lots applied => 3 Lots Confirmed
20 Lots applied => 2 Lots Confirmed
10 Lots applied => 1 Lots Confirmed
9 Lots applied => Lottery, 9 out of 10 applicants will get 1 lot [Lottery will be done for all applicants who have applied for 9 Lots]
8 Lots applied => Lottery, 8 out of 10 applicants will get 1 lot [Lottery will be done for all applicants who have applied for 8 Lots]
....
....
....
1 Lot applied => Lottery, 1 out of 10 applicants will get 1 lot [Lottery will be done for all applicants who have applied for 1 Lot]

So as you can see, the more lots you apply from single account, the more chances you've to get allotment.

I hope it's clear now :)

Thanks @techuser.

Major chunk (75%) has been earmarked for Institutional Investors as against 50% in any IPO. Retailers and NIIs have been earmarked only 25% as against 50%. Hence, public float will be low.

54.2
It must be MindSpace not MindTree

Am I right?

There are many issues with QIB portion of 75%, Nothing new in it

Dear Friends,

कृपया सोच समझ कर अपनी Bid लगाए l
एक बार Bid लगाने के बाद आप उसे ना तो कम ज्यादा कर सकेंगे और ना ही withdraw कर सकेंगे l

धन्यवाद!!!

You are right partially. I can not reduce applications but can add additional application. At allotment they well be merged together and treated as single application if name , PAN and demat tally

Is allotment on pro rata basis in case of REIT?

Prorata

@Experts, can anyone elaborate on the retail allotment process in case of over-subscription, is it going to be the same lottery process as in regular IPOs? Since NII and Retail are considered under the same cap, it would be really tough to get allotment if NII subscribes heavily, and if it goes proportionate basis.

For example, if NII is 20X, you should have applied at least 20 LOTS to get allotment. In this case, there's no chance for small investors who has applied for a single lot.

@Dinesh ji, then you need 15 lakhs to get 1 lot, if I'm not wrong :)

It depends upon over subscription level in NII category. In Embassy it was just 3 times

WHAT IS FACE VALUE OF MIND SPACE REIFT, FACE VALUE IS INR275

There is no face value concept in REIT. You will get payout per unit. Nothing to do with face value

Pursuant to the REIT Regulations and the SEBI Guidelines, investors are not permitted to withdraw or
lower their Bids (in terms of quantity of Units or the Bid Amount) after submitting a Bid.

Allotment for retailers will be tough as NII and Retail clubbed. No separate Retail. Also allotment will be on prorata basis means NIIs will get major portion. Better wait till 11.00AM on 29.07.20 to take a view whether to apply or not.

How many lot to be applied to get minimum one lot from single PAN? Pl advice . Thanks & Regards

I recently came to know that one can only apply MAXIMUM 3 Lots, that's 165000 RS investment per account/PAN. Is it true?

Quite a few experts here are aware of REIT. But, for benefit of all other boarders seeking answers to some basic queries penning down explanation in simple terms.

1.REIT is a separate asset class neither an equity share nor a mutual fund. However, it moves like equity share whenever underlying real estate assets valuation increase or deciares only & only factored in. It works like a debt mutual fund collecting lease rentals from commercial or residential properties as the case may be instead of interests on debt.

2. REIT is a fund used to buy ( in this IPO fund already created & assets moved in prior) real estate assets by the developer that are already with him and earn rentals on renting to clients and any seek future appreciation . As per current guidelines rentals collected have to be mandatorily distributed in the form of dividends each quarter. So REIT market price moves in tandem with expected dividend each quarter and comes down after record date, similar to Non Convertible debenture.(NCD). Further, till last financial year dividend distributed was taxed with TDS as it tis treated as rental income whereas dividend from equity shares of to shareholder was tax free due to dividend tax. From this year all are taxable . From this financial year all dividends will be treated alike. But, REIT dividend will have TDS.

3. To certain extent REIT from a developer may be treated like a mutual fund units issued carrying a basket of real estate. A developer defines name & list of assets that will be moved or already moved into this fund. Now Here is the catch. Let us say well known developer like Embassy and Raheja possess various kind of property assets vastly spread all over the country. The developer can decide in concurrence with the institutional investors on the assets that will be moved in this fund. Its like deciding to buy basket of shares in a specific equity fund that is already decided by fund manger in advance. Depending on developer's intention assets may get picked and left out to REIT investors benefit or developers benefit. In other words, a loop hole here exists, similar to a promoter of list firm having other privately owned group firms. So even if by names these developers are well known, there is no guarantee all properties will be in specific REIT fund. In addition , developer may even make another REIT 2 fund after some other left out assets as mutual fund debt schemes are issued, instead of including in the existing fund. Institutional or venture investors will invest in their private funds early and reap benefits before IPO for the initial risk they assume.

4. This investment as an asset class is more suitable to investors wanting regular inflow of income each quarter. One have to assume money is invested in a property that earns rent each quarter that is fully taxable with TDS. Any capital appreciation on account of property appreciation even though exists, normally may not get factored unless the developer sells and cashes in.

5. Embassy has given good dividends each quarter. Initial surge on listing was mainly on assumption of asset basket appreciation and expectation of increase rent prices. Please note rent increase though my be present, few vacated premises in COIVD times or "work from home" with zero rentals can offset these increases. As regards to IPO price Mindspace is appears to be more attractively priced compared to previous only IPO from Embassy. But, it may be noted that Embassy REIT is almost debt free with higher quarterly distribution as against Mindspace with higher debt that may offer lower quarterly distribution.

This investment with high minimum investment is suited to those with surplus money and not so much for listing gains.

Trust the above helps.

Mindspace REIT received very good response by Anchor Investor.

Big International Institution like Govt of Singapore, Nomura, HSBC, Fidelity, Morgan Stanley and Societe General are invested as Anchor whereas SBI, HDFC, AXIS, BIRLA, ICICI are also there as Domestic Investors.

The Govt of Singapore and Momentary Authority of Singapore together acquired about 16% of total Anchor book.

With both strategic and Anchor Investment, About 60% portion of Mindspace REIT is already subscribed.

Thanks.

@Aniketiaf ji, looking at this figures, chances of premium listing is expected right?

@Aniketiaf ji, why there's no GMP activity yet, would you please share your thoughts on this?

can we apply via single bank account in different DMAT account of different people via ASBA.

Check it with your bank through net banking whether it will allow or not.

Be careful,Third party applications are liable to be rejected. Apply through your own bank account only.

55227200 units @275/- allotted to 54 Anchor investors on 24 July 2020

Some of the Anchor list
1. Fidility
2.copthall Maurtius
3.Axis
4.fiam group
5. Moon Capital
6.Trafalgar
7. Tosca Focus
8.Nomura Singapore
9.Fullerton
10. HSBC
11.Star Health
12.Aditya Birla
13. Morgan stanly
14. Max Life
15.Icici
16. Bnp Paribas
17. Sbi Life
18. HDFC Life etc

Thank You Sirji.
Can you please share the link. I tried NSE website but could not find the link

Rajakumar Ji, Are you applying?

Mindspace business parks property command status among IT industries
But due to Covid 19 and work to home will be under stress ,
consider RITES ipo which went below the issue price of Rs 185 but now above the issue price @ Rs 246
Those who are long term investors can buy this share after listing ,
We request those who follow me should not apply in this IPO
investing Rs 55000 and then get trapped is of no use
If you are bullish in this space buy after listing when the price will stabilise

I was allotted Embassy REIT and during last year I have sold and bought it a dozen times, made a handsome profit every time.. but honestly, it's not fun... In stocks like HDFCAMC/ DMART/ Polycab/ FINE/ AFFLE, you are absolutely sure about the rise and rise of the value of the stock over IPO value..But REIT stocks are not like these.. there are a lot of swings... value appreciation is in actual terms is very slow.. Big players act as operators and bad news always sends panic attacks.

Dear Chem
Rites shares is not correct company to compare as mentioned by PoweUser.
Embassy Office is only company listed in India.
This is the second company.
Embassy office issue price around 300 it was listed at par after 15 days of listing it went to 350. After touching 500 now trading 365.
Mindspace is good company with strong promoters.
There are 54 Anchor Investor participated in this issue it shows how the company is.
It seems good subscription expected in the main issue also.

When will be Anchor investor list available???

anchor list on stock exchanges