Property Share Investment Trust REIT IPO Day 2: Issue subscribed 5% so far; check price band, issue size, dates and other key details

Property Share Investment Trust IPO: The Real Estate Investment Trust (REIT) IPO of Property Share Investment Trust (PSIT) has been subscribed 5% so far on Tuesday, December 3, the second day of subscription. The initial public offering of PSIT is India’s first small and medium REIT IPO.

The issue has received bids for 153 units against 3,353 units on offer. The other investors category has been subscribed 18%, while institutional investors are yet to place bids.

Property Share Investment Trust, the country’s first registered small and medium REIT, aims to raise ₹352.91 crore from the primary market through the IPO. Property Share launched a REIT IPO for PropShare Platina, which is the first scheme under the PSIT.

Earlier this year, in June, the SEBI regulated small and medium REITs as a new asset class within the REIT framework for assets valued between ₹50 crore to ₹500 crore.

Property Share REIT IPO: Issue size and price band

The book-built issue consists of an entirely fresh issue of Platina units with no offer-for-sale (OFS) component. The price band for the issue has been fixed at ₹10 lakh to ₹10.5 lakh per unit. The retail investors can apply for at least 1 unit.

Property Share REIT IPO dates

The Property Share REIT IPO opened for subscription on December 2. The subscription window for the issue will close on December 4. The allotment status of the public issue will be finalised on Thursday, December 5. Refunds will be initiated for unsuccessful bidders on Friday, December 6, and successful bidders will receive Property Share REIT shares in their Demat account on the same day.

The tentative listing date for the issue has been fixed on Monday, December 9. The Property Share REIT IPO units will be listed on the NSE and BSE.

Property Share REIT IPO registrar

ICICI Securities Limited is the book-running lead manager for the issue, and Kfin Technologies Limited is the registrar.

Property Share REIT IPO objective

The trust plans to use the money raised via public issue to acquire PrestigeTech Platina by Platina Special Purpose Vehicles as commercial office spaces. The proceeds will also be used to reimburse the investment manager for paying applicable statutory charges (including stamp duty, registration, surcharge, and cess for the registration of sale deeds). The reimbursement will be done by lending to the Platina SPVs and subscribing to the equity and debt instruments of the Prestige Tech Platina asset. A portion of the proceeds will also be used for general purposes.

Property Share Investment Trust SM REIT

The first scheme, PropShare Platina, consists of 2,46,935 square feet of office space in Prestige Tech Platina. PropShare Platina is a Leadership in Energy and Environmental Design (LEED) Gold office building located on the Outer Ring Road (ORR) area of Bengaluru.

The property is proposed to be leased to a US-based tech company. The proposed lease is likely to be for 9 years, with a 4.6-year weighted average lock-in and 15% escalation in rents every 3 years.

PropShare Platina scheme offers investors a projected FY26 distribution yield of 9%.

The Outer Ring Road area is Bengaluru's largest office market, accounting for 34% of the total office stock, according to research by Jones Lang LaSalle. The area is home to offices of multinationals such as Adobe, Amazon, Google, Samsung, CISCO, JP Morgan, Morgan Stanley, and Wells Fargo.

The PropShare Investment Manager has said that the annual management expenses for FY25 and FY26 will be waived off for the first scheme, and only a nominal fee of 0.25% and 0.3% will be charged in FY27 and FY28, respectively.