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Embassy Office Parks REIT IPO – Review, Allotment, Subscription, GMP & DRHP

Let’s have a detailed review of the company and analytics of the Embassy REIT IPO release date, Embassy IPO (Book Built Issue) offer price, subscription, Embassy Office Parks REIT IPO allotment, Embassy Office IPO grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Embassy Office Parks REIT own one of India’s largest office portfolios. Portfolio comprises seven best-in-class office parks and four prime city-center office buildings totaling 32.7 msf as of December 31, 2018, with strategic amenities, including two completed and two under-construction hotels totaling 1,096 keys, food courts, employee transportation and childcare facilities.


Embassy Office Parks REIT IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments8.5/10
Industry Ranking8.1/10
Company Background7.9/10
Company Reputation8.5/10
Competitive Edge7.9/10
Financial Statements7.8/10
Popularity Index8.4/10
Promoters Reputation8.7/10
Retail Appetite7.9/10
Top Brokers Review8.2/10
Overall Ratings8.2/10
Star Ratings★★★★☆

Summary of Embassy Office Parks REIT IPO (Book Built Issue)

Embassy Office Parks REIT IPOEmbassy Office Parks REIT own one of India’s largest office portfolios. Portfolio comprises seven best-in-class office parks and four prime city-center office buildings totaling 32.7 msf as of December 31, 2018, with amenities, including two completed and two under-construction hotels totaling 1,096 keys, food courts, employee transportation and childcare facilities.

Initial public offering of  up to 158,333,200 Equity Shares of Rs 0, aggregating up to Rs. 47,500 million by Embassy REIT. Strategic Investor Portion 29,208,800 Units aggregating to Rs. 8,763 million, subject to a minimum of 5% and a maximum of 25% of the Issue. The Public Issue constitutes: Institutional Investors – 75%, Non Institutional Investors – 25%.

From FY 2015-16 to FY 2017-2018, as per the Restated Financial Statements,

  • The revenue from operations has increased at a CAGR of 13.1% from Rs. 105490.00 million in Fiscal 2016 to Rs. 135155.22 million in Fiscal 2018.
  • The Manager had a net worth of not less than Rs. 100 million as on March 31, 2018. The net worth of the Manager as of March 31, 2018, computed in accordance with Companies Act, 2013, was Rs. 221.9 million. As
  • The profit before finance costs, depreciation, amortization, and income tax excluding share of profit of equity accounted investee and tax for FY 2017 was Rs. 12,399.70 million, an increase of Rs. 112.04 million or 0.91%, compared to Rs. 12,287.66 million in FY 2016.
  • Profit after Tax for FY 2017-18 has been increased to Rs. 2852 millions from Rs. 2570.49 millions representing increase by 10.8 % from FY 2016-2017. Profit after Tax has increased due to comparative increase in revenue than expenses. 


Embassy Office Parks REIT IPO Dates

The opening and the closing date of Embassy Office Parks REIT IPO is March 18, 2019 and March 20, 2019 respectively.


Embassy Office Parks REIT IPO Subscription

Day / DateQIBNIIRIITotal Subscription
1st Day – Mar 180.30x0.08x0.20x
2nd Day – Mar 190.59x0.32x0.47x
3rd Day – Mar 200.59x0.37x0.49x
Shares Offered or Net Issue38,866,80032,389,60071,256,400

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


Embassy Office Parks REIT IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Basis of Allotment Finalization28-Mar-19
Refunds Initiation29-Mar-19
Credit of Shares to Demat Account2-Apr-19
Share Listing Date3-Apr-19

Embassy Office Parks REIT IPO Price Band

The face value of each share is Rs 10, but the price band is Rs 299 – Rs 300 Per Equity Share.


Embassy Office Parks REIT IPO Equity Share Offering

Initial public offering of  up to 158,333,200 Equity Shares of Rs 0, aggregating up to Rs. 47,500 million by Embassy REIT.


Embassy Office Parks REIT – Company Overview

Embassy Office Parks REIT own one of India’s largest office portfolios. Portfolio comprises seven best-in-class office parks and four prime city-center office buildings totaling 32.7 msf as of December 31, 2018, with amenities, including two completed and two under-construction hotels totaling 1,096 keys, food courts, employee transportation and childcare facilities.

They believe that replicating such a platform would be difficult given land acquisition complexities and long development timelines in India. Approximately 80.9% of the Gross Rentals from their 160+ marquee tenant base is contracted with leading multinational corporations and approximately 43.4% is contracted with Fortune 500 companies such as JP Morgan, IBM and Microsoft, as of December 31, 2018.

They will achieve growth through a combination of contractual rent escalations, re-leasing at market rents (they estimate that the market rents of their properties are 33.6% above in-place rents), lease-up of vacant space and new construction within the Portfolio to accommodate tenant expansion.

Over the last three years and nine months, through their disciplined operating and investment expertise, they have:

  • Leased 6.8 msf of total office space and achieved average re-leasing spreads of 48.0% on approximately 2.7 msf of re-leased space; Achieved 80.9% tenant retention rate, with 7.7 msf of office space renewed (including exercise of renewal options), without incurring material tenant improvement capital expenditure (“TI capex”); Demonstrated a 7.1% Same-Store Rental CAGR across the Portfolio Assets and the Portfolio Investment over FY 2016 to FY 2018, by attracting and retaining high quality tenants;

Competitive Strengths and Strategies of Embassy Office Parks REIT:

  • Located in India, a leading services hub for global corporate
  • Best-in-class office properties with high quality infrastructure
  • Highly occupied by a diversified, high quality, ‘sticky’ multinational tenant base
  • Simple business with embedded growth
  • Strategically located in the top-performing markets with high barriers to entry
  • Highly experienced management team
  • Renowned Sponsors with global expertise and local knowledge

Embassy Office Parks REIT – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

Amount (in INR & millions)
30-Dec-1831-Mar-1831-Mar-1731-Mar-16
Total Assets137,790.86135,155.22111,968.97105,490.00
Total Revenue14,932.3017,662.6516,456.3715,753.67
Total Expense3,546.445,254.264,056.673,466.01
Profit After Tax2,852.282,570.491771.26932.62

From the above statements, one could find that the Embassy Office Parks REIT may perform well.


Embassy Office Parks REIT IPO – Trustee / Managers / Embassy / Sponsors

  • The Trustee of the Company is – AXIS Trustee
  • The Manager of the Company is – Embassy Office Parks
  • The Embassy Sponsor of the Company is – Embassy Property Developments Private Limited
  • The Blackstone Sponsor of the Company is – BRE/ Mauritius Investments

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.


Embassy Office Parks REIT IPO Offer Details or Issue Details

Particulars No. Of Equity Shares
 Equity Shares Offered Up to [●] Units aggregating up to Rs. 47,500 million
 Of which:
 Net Issue to the Public Up to [●] Units aggregating up to Rs. 38,737 million
Of which
 Retail Investors Portion Upto [●] Equity Shares 
 Non-Retail Investors PortionUpto [●] Equity Shares
Strategic Investors29,208,800 Units aggregating to Rs. 8,763 million, subject to a minimum of 5% and a maximum of 25% of the Issue
 Equity Shares outstanding prior to the IssueUpto [●] Equity Shares
 Equity Shares outstanding after the IssueUpto [●] Equity Shares 

Embassy Office Parks REIT IPO Issue Object

These are the IPO Issue Objects of the company

  • Funding the Working Capital requirements of the Company:
  •  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
  •  General Corporate Purposes

Embassy Office Parks REIT IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

  • Located in India, a leading services hub for global corporates
  • Best-in-class office properties with high quality infrastructure
  • Highly occupied by a diversified, high quality, ‘sticky’ multinational tenant base
  • Simple business with embedded growth
  • Strategically located in the top-performing markets with high barriers to entry
  • Highly experienced management team
  • Renowned Sponsors with global expertise and local knowledge

The relevant quantitative factors are:

On the basis of standalone statement:- (Not yet Disclosed)

Basic & Diluted EPSRONW in %NAV (Rs.)
31-Mar-16
31-Mar-17
31-Mar-18
  • Competitive Peers:

Currently there are no listed real estate investment trusts in India. Accordingly, it is not possible to provide an industry comparison in relation to the Embassy REIT.


Embassy Office Parks REIT IPO Lead Managers

GLOBAL COORDINATORS AND BOOK RUNNING LEAD MANAGERS
Morgan Stanley India Company Private Limited

Kotak Mahindra Capital Company Limited

J.P. Morgan India Private Limited

DSP Merrill Lynch Limited

BOOK RUNNING LEAD MANAGERS
Axis Capital Limited

Credit Suisse Securities(India) Private Limited

Deutsche Equities IndiaPrivate Limited

Goldman Sachs (India)Securities Private Limited

HSBC Securities andCapital Markets (India)Private Limited

IIFL Holdings Limited

JM Financial Limited

Nomura Financial Advisoryand Securities (India)Private Limited

Embassy Office Parks REIT IPO Registrar to offer

Registrar to the Offer
Karvy Fintech Private Limited
(formerly KCPL Advisory Services Private Limited)
Karvy Selenium Tower B, Plot 31-32, Gachibowli,
Financial District, Nanakramguda,
Hyderabad 500 032, Telangana, India
Tel: +91 40 6716 2222, Fax: +91 40 2343 1551
E-mail:
Investor grievance e-mail:
Website: http://www.karvyfintech.com
Contact Person: Mr. M Murali Krishna

Other Details:

  • Statutory Auditor – BSR & Associates LLP, Chartered Accountants
  • Peer Review Auditor – BSR & Associates LLP, Chartered Accountants
  • Trustee to the Company – Axis Trustee

Embassy Office Parks REIT IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.5/107.4/108.5/108.1/107.1/10
Sharekhan7.2/107.1/108.6/108.1/107.2/10
Kotak Securities7.3/107.5/108.4/108.1/107.3/10
ICICI Direct7.3/107.3/108.7/108.1/107.1/10
IIFL7.5/107.2/108.8/108.0/107.1/10
Edelweiss7.5/107.4/108.4/108.3/107.2/10
Zerodha7.4/107.1/108.5/108.1/107.0/10
5Paisa7.1/107.1/108.4/108.1/107.1/10
Karvy7.4/107.3/108.2/108.1/107.1/10
Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

Embassy Office Parks REIT IPO Grey Market Premium

The Embassy Office Parks REIT IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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Embassy Office Parks REIT IPO News

News 1 – IPO ISSUE OPENS SOON [Download Prospectus]


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