This post on Mindspace Business Parks REIT attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Yes Bank FPMindspace Business Parks REIT O or not.
Related Posts : Mindspace Business Parks REIT Review
Grey Market Premium etc.
- 29-07-20 small GMP and application deals reported in Grey market
- 27-07-20 Almost Nil GMP. Some report of Rs. 5 GMP.
Subscription: Mindspace Business Parks REIT ( x times)
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Consolidated Brokerages Views on Mindspace Business Parks REIT
Angel Broking: ” Given the current uncertainties due to Covid-19thelisting gains may be limited.We believe that in the long run M-REIT will offer similar or better post tax yields as compared to fixed income. Steady and growing dividend stream along with capital appreciation of underlying asset makes it an attractive investment opportunity in the long run.We recommend ‘Subscribe’to the issue from a long term investment perspective.”
Ashika : “REIT have to pay out at least 90% of their net distributable cash flows to stockholders as dividend and that is an attractive investment proposal amid declining interest rate regime. At Rs. 275 per unit, post-listing equity value stands at Rs. 16,308 crore, based on 59.30 crore units post IPO. NAV (as of 31-3-20) stands at Rs. 320 per unit, which leads to 14% discount to issue price of Rs. 275. On FY21E financials shared in the RHP, the yield works out to about 7.5-8.0%, on issue price of Rs. 275 per unit and there is further scope of growing in the yield with new lease/release offering and an average escalation of 15% from a three-year perspective hold good investment for investor who are seeking certainty in returns. Hence, we recommend our investors to SUBSCRIBE the IPO for long term investment perspective.
Choice Broking: “Based on the projected distribution schedule, pre-tax yield comes out to be 6.5% in FY22E and 7% in FY23. Considering,already the subdued interest rate in the economy and anticipating further decline in the rates, the projected yield from thisREIT seems to be attractive. However, there are certain risks associated – like uncertainty on the aftereffects of the Covid-19 pandemic on economy, falling real estate prices etc. All these issues might impact the future rental income of MBP REIT. Considering the above observations, we assign a “Subscribe with Caution” rating for the issue.”
Dalal Street Journal: ” Considering the already the subdued interest rate in the economy and anticipating a further decline in the rates, the projected yield from this REIT seems to be attractive. However, there are certain risks associated like uncertainty on the aftereffects of the COVID-19 pandemic on the economy, falling real estate prices, etc. All these issues might impact the future rental income of MBP REIT. Therefore, the issue is suitable to only those investors, who want to diversify their investment and can invest that part of their portfolio that they would be parking in debt component.
GEPL Capital: “The offer is reasonably priced with a P/NAV of ~0.86x, the structural headroom for growth of REITs in India,high yield and improving capital structure, make this a long term investment bet..”
IIFL : ” The REIT is projecting a distribution yield of 7.5 per cent for FY22, largely through the tax- efficient mode of dividends. Even as the ongoing Covid-19 poses risks to the near-term projections, we believe that over time, Mindspace REIT would offer a steady double-digit total return structure, on a steady & growing dividend-income stream. We recommend subscribing to the issue,”
SP Tulsiyan website: “Given systemic risk as well as those at sector and promoter level highlighted above, the returns do not appear favourable. Hence, we recommend an ‘avoid’ to the issue of Mindspace Business Parks REIT. “
MORE WILL BE ADDED AS THEY BECOME AVAILABLE
Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above infoimration is collated from various online sources and is for educational purpose only. Please visit indidivual brokearge sites to read the actual reports. Please donot make ypur investkent decisions based on this info as it is not completre amd exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.