Nexus Select Trust REIT subscribed 5.45 times at close

The Rs.3,200 crore IPO of Nexus Select Trust REIT, consisted of a fresh issue of shares and combined with an offer for sale. While the fresh issue portion was for Rs1,400 crore, the OFS portion was for Rs1,800 crore taking the total issue size to Rs3,200 crore. The IPO saw fairly moderate response on Day-1 and Day-2 of the IPO but picked up steadily on the last day of the IPO and closed with rather healthy subscription numbers at the close of Day-3.

As per the combined bid details put out by the BSE at the close of Day-3, Nexus Select Trust REIT was subscribed at 5.45X overall, with best demand coming from the HNI segment followed by the QIB segment. In REITs there is no specific retail category available. In fact, only the HNI segment saw some good traction on the last day. The HNI portion did do well and normally the high net worth investors are known to serious look at REIT as an alternate asset class to diversify the portfolio

How the subscription panned out over 3 days of the REIT IPO

The table below captures the day-wise details of how the subscription level of 5.45X was built up for the Nexus Select Trust REIT IPO.

As can be seen from the above table, the HNI / others portion got fully subscribed on the second day of the IPO itself while the QIB portion got fully subscribed only on the third day. Overall full subscription also happened only on the last day of the REIT IPO. However, it must be said that both the HNI and the QIB portion saw smart traction on the last day of the IPO. Let us now turn to the category wise oversubscription as of the close of third day.

This amount shown in the table above excludes the anchor portion, which had accounted for 45% of the total IPO size and had been adjusted to the overall QIB allocation. The 5.45 times subscription is on the net 60% of the issue size that was kept open for the QIB subscription in the IPO.

Quick look at the 45% anchor allocation of Nexus Select REIT IPO

Anchor placement story of Nexus Select Trust REIT

Nexus Select Trust REIT had a stellar response to its anchor placement program. The program had completed the bidding for its anchor allocation a day before the opening of the IPO. There was an enthusiastic response as the anchor investors participated through the process of book building. A total of 14,39,99,850 shares were allotted to a total of 20 anchor investors. The allocation was done at the upper IPO price band of Rs.100 which resulted in an overall allocation of Rs.1,440 crore. The anchors have already absorbed 45% of the total issue size of Rs3,200 crore, an indication of robust institutional demand.

In the Nexus Select Trust REIT IPO, the institutional reservation is 75% with the balance 25% reserved for the HNIs. Listed below are the 10 anchor investors who have been allotted at least 4% of the total anchor allocation individually. The entire anchor allocation of Rs.1,440 crore was spread across 20 major anchor investors. These top 10 anchor investors listed below accounted for 86.65% of the total anchor allocation of Nexus Select Trust REIT.

Data Source: BSE Filings

The IPO of Nexus Select REIT has closed on 11th May 2023.