Brookfield REIT IPO Review – IPO Price, Offer Dates & Details!

Brookfield REIT IPO Review

It almost looks like we are already making up for all the lost time from 2020. It at least seems that way in the primary markets with IPO’s every other week. In this article, we cover the Brookfield REIT IPO Review and look into important IPO information and find out the possible prospects of the company.

About the Company – Brookfield REIT IPO Review

Brookfield  Real Estate Investment Trust India is the Indian REIT wing of the Canadian asset manager Brookefield Group. The company is looking to raise Rs. 3,800 crore this week during its IPO from 3-5 Feb 2021. REITs are listed entities that invest in income-generating properties and distribute at least 90 percent of their income proceeds to unit-holders through dividends. The company has 4 large campus-format office parks strategically located in Mumbai, Noida, Gurugram, and Kolkata. They have a Committed Occupancy of 92% and leased to marquee tenants with 75% of Gross Contracted Rentals. Their clients include MNC’s like Barclays, Bank of America Continuum, RBS, Accenture, Tata Consultancy Services, and Cognizant. The company currently owns 1.4 crore square feet of its commercial properties across the country. The company is also looking to add another 1.5 crore square feet of space in the next few years.

Brookefield REIT owns $17 billion across real estate, infrastructure, renewable power, and private equity in India. The company also owns seven toll roads totaling more than 600 km of roadway, solar and wind assets,  construction business, and real estate management services.

So far there have been only two other Reit IPO’s in the Indian markets. Those being the Embassy REIT IPO launched in April 2019, the Mindspace REIT IPO which was launched in July 2020 in the midst of the pandemic. However, Brookfield REIT is the only institutionally managed public commercial real estate vehicle in India.

(Rs. in millions)

WFH and Office Parks

Investors may be concerned when it comes to responses given by companies during the pandemic. Most of the companies shifted their activities to the Work From Home(WFH) mode of functioning. This could have been a challenge to the office parks like those provided by Brookefield. But the company has stated that there is no data to suggest that the WFH concept is the new normal and exuded confidence that benefits like closely working together for productivity purposes will eventually get teams to work from offices. Brookefield REIT also stated that they have over 90% occupancy at present. All the properties have been working through the lockdown. Their collections have been over 98% and 5 lakh square feet of space has been re-leased during the pandemic.

 Experts have also stated that the IPO could not have come at a better time as the real estate markets in India have matured and there could be a correction within 3 months when the loan moratorium period ends. 

Brookefield REIT going public would also encourage more real estate owners to go for REIT listing and being a global company can also further increase the inflow of capital into the domestic real estate. 

Key IPO Information – Brookfield REIT IPO Review

BSREP India Office Holdings V Pte. Ltd is the promoter of the company. Morgan Stanley India Co., DSP Merrill Lynch Ltd, Citigroup Global Markets India Pvt, and HSBC Securities and Capital Markets (India) Pvt. have been appointed as the global coordinators and book-running managers to the issue.

Following are the key details for the IRFC IPO:

ParticularDetails
IPO Size₹3,800.00 Cr
Fresh Issue₹3,800.00 Cr
Offer For Sale(OFS)Nil
Opening DateFeb 3, 2021
Closing DateFeb 5, 2021
Face Value ₹10 per equity share
Price Band₹274 to ₹275 per equity share
Minimum Lot Size200 Shares
Maximum Lot Size-
Listing Date:Feb 17, 2021

Purpose of the IPO

The net IPO proceeds are proposed to be utilized for the following objectives:

  • To make partial or full payment of existing indebtedness of the Asset SPVs.
  • To meet general corporate purposes.

Closing Thoughts – Brookfield REIT IPO Review

 Looking back at other REIT IPOs, both Embassy Office Parks REIT and Mindspace Business Park REIT are currently trading at a premium to their issue price. These companies are worthwhile investments for long term investors who look for steady incomes. REITs receive stable rental income and this is transferred to the unitholders in the form of dividends. Let us know what you think about the Brookefield REIT IPO.

Happy Investing! 

INDIGO PAINTS IPO Review 2021

Indigo Paints IPO 2021 – IPO Offer Price, Details & Review!

Indigo Paints IPO Review 2021: The new year has already brought several great news. Two of them being the IPO’s set for next week. This includes the IPO for Indigo Paints. Indigo Paints IPO opens next week between Jan 20-Jan 22, 2021. 

In this article, we look into important information on the Indigo Paints IPO 2021 and find out the possible prospects of the company.

Indigo Paints IPO – About the Company

Indigo Paints IPO

Indigo Paints was incorporated in the year 2000 by IITian Hemant Jalan in Jodhpur. He started the company as he felt that there was a big market for Cement Paints. Jalan faced many hurdles in scaling his business this was because the industry already had strong competitors that already had a place on retail shelves. Advertising too was made impossible when competing with these giants.

This was when Jalan decided to take a different approach towards the market. He introduced differentiated products in the industry. Indigo paints introduced Metallic paints in India which gave a unique look. This product was welcomed by retailers even with the lack of advertisement.

Since then the company has introduced many more products to the market like Floor coat paint which can withstand vehicular traffic, ceiling coat paint, tile coat paint, Dirtproof & Waterproof Exterior Laminate, Floor Coat Emulsions, Exterior, and Interior Acrylic Laminate, and PU Super Gloss Enamel. 

Indigo Paints Promoter

(Hemant Jalan – Promoters)

Due to its differentiated product line, Indigo paints today is one of the fastest-growing paint companies in India. It is the 5th largest company in the decorative paint industry. The sales of their differentiated products have been continuously growing from 26.68% in 2018 increased to 28.62% in fiscal 2020.

Indigo Paints also has a strong distribution network across 27 states and seven union territories. The company also has strategically set manufacturing facilities in Jodhpur (Rajasthan), Kochi (Kerala), and Pudukkottai (Tamil Nadu). Over the years Indigo Paints has been successful in capturing 2% of the paint industry.

Effects of the Pandemic on Indigo Paints

Indigo Paints did not suffer any adverse impacts due to the pandemic. This was because of its negligible exposure the company has to big cities. They only account for 1-2% of their sales. The company predominantly operates in Tier 2-4 cities.

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Indigo Paints IPO Information

Indigo paints received the nod from SEBI earlier this month and will be open for subscription from January 20 and close on January 22. Kotak Mahindra Capital Company, Edelweiss Financial Services, and ICICI Securities will be the book running lead managers to the public issue. The IPO will include a fresh issue of shares and the sale of existing shareholder stakes. These include Sequoia Capital, SCI Investments, and promoter Hemant Jalan.

Important Indigo Paints IPO details

ParticularDetails
IPO SizeRs. 1176 Crores
Fresh IssueRs. 300 Crores
Offer For Sale(OFS)Upto 58,40,000 shares
Opening DateJan 20, 2021
Closing DateJan 22, 2021
Face Value Rs. 10 per Equity Share
Price BandRs. 1480 to Rs. 1500 per Equity Share
Minimum Lot Size10 shares (Rs.15,000)
Maximum Lot Size130 shares (Rs. 195000)
Listing Date:Feb 02, 2021

Indigo Paints IPO – Purpose of the IPO

The proceeds from the IPO will be used for the following purposes

  1. The company intends to open one more manufacturing facility in Tamil Nadu. Here it will be adding capacities to manufacture water-based paints to cater to the growing demand for these paints. The manufacturing unit in Tamil Nadu will have a capacity of 50,000 KLPA and is expected to be operational during FY2023.
  2. The proceeds will also be used to purchase tinting machines and gyroshakers.
  3. To repay borrowings
  4. For other corporate purposes.

Indigo Paints IPO – Competitors in the Industry

(Market Share – Paint Industry)

A few of the biggest competitors of Indigo Paints in the Paint Industry are Asian Paints, Berger Paints, Kansai Nerolac Paints, Akzo Nobel India Ltd aka Delux Paints, British Paints India Ltd, Nippon Paint India, Shalimar Paints Ltd.

CompanyMarket CapPE Ratio TTM
Akzo Nobel India Ltd.10757.7660.7646
Asian Paints Ltd.259415.04114.991
Berger Paints India Ltd.77344.22128.3189
Kansai Nerolac Paints Ltd.33898.0585.7375
Shalimar Paints Ltd.576.67--

(Paint Industry Stocks India – Source: Trade Brains Portal)

Closing Thoughts

Indigo Paints has come a long way especially considering the number of large players and moats present. But do you think the company will be to replicate the success of large brands like Asian Paints now that it is competing in the big leagues? Let us know what you think about Indigo Paints IPO by commenting below. Happy Investing.