The ₹3,800 crore initial public offering (IPO) of Brookfield REIT was subscribed 15% on the first day (upcoming ipo)  on Wednesday. The public offer received bids for 11.5 million units against the IPO size of over 76.2 million shares, according to data available on the exchanges.

Brookfield REIT will be the third real estate investment trust to be listed on the bourses in India, but the only 100% institutionally managed public commercial real estate vehicle. It aims to raise ₹3,800 crore via the IPO. On Tuesday, it received bids for ₹1,710 crore from anchor investors. Brookfield (upcoming ipo)    India REIT has an issue price of ₹274 to ₹275 per unit. Currently, BPG Holdings Group, an entity of Brookfield, holds a 99% stake in the REIT. Brookfield is offering 14 (upcoming ipo)    million sq. ft of its portfolio in the REIT and proposing to reduce its shareholding in it to 54% after the issue.


Bank of America, Citigroup Inc, and Morgan Stanley are managing the IPO.

Brookfield REITs offering is a great indicator of the strong future that commercial real estate has in (upcoming ipo)    India, Tushar Rane executive director, Knight Frank India said. “After the successful listing of Embassy and Mindspace REITs, this rides high on long-term investor confidence. The (upcoming ipo)    commercial office space segment has been growing from strength to strength over the past few years with sustained growth in rentals across prime business districts," he said.

Analysts at Reliance Securities expect saving on finance cost should aid the company to generate (upcoming ipo)    positive net distributable cash flows from FY22E onwards to the tune of ₹660 crore and ₹700 crore in FY22E and FY23E, respectively which offer yield of 8%.