The Property Share Investment Trust IPO closed on December 4, 2024, the final day of bidding, with the offering being fully subscribed at 1.19 times. However, the institutional investors' portion of the public issue remained undersubscribed, as demand from this segment was relatively weak.

The Property Share Investment Trust aims to raise ₹353 crore through this initial public offering (IPO), which opened for subscription on December 2, 2024. The price band for the units was set between ₹10 lakh and ₹10.5 lakh per unit. Despite the IPO being fully subscribed by the close of the issue, the overall interest was somewhat uneven.

Bidding Details and Subscription Data

According to data from the Bombay Stock Exchange (BSE), the Property Share Investment Trust IPO received bids for 4,002 units, against the offer size of 3,353 units. This reflects a healthy demand from retail investors, with non-institutional investors leading the way by subscribing for 3,668 units—a subscription rate that was 4.37 times higher than the 839 units reserved for them.

On the other hand, the institutional investors' portion saw a subdued response, as they subscribed for only 13% of the total portion reserved for them. Institutional investors bought only 334 units, out of the 2,514 units set aside for them. This highlights a marked imbalance in demand, with non-institutional investors showing significantly more interest in the offering.

The IPO has reserved up to 75% of the total offer size for institutional investors, while the remaining portion is designated for non-institutional investors. The final subscription data indicates that, while the offering overall was fully subscribed, institutional participation was lower than anticipated.

About Property Share Investment Trust

The Property Share Investment Trust is India’s first registered small and medium real estate investment trust (REIT). The company operates under various schemes and invests or reinvests in completed, revenue-generating real estate properties. These properties are typically held through special purpose vehicles (SPVs) and other forms of investment vehicles.

The first scheme launched by Property Share Investment Trust is PropShare Platina, which is focused on investing in commercial office spaces in Bangalore. The property in question includes six floors of Prestige Tech Platina, located in Bengaluru, with a total leasable area of 2,46,935 square feet. The office space is primarily leased to 24[7].ai, a US-based tech company, on a 9-year lease.

The PropShare Platina scheme offers investors a projected distribution yield of 9.0% for FY2026, 8.7% for FY2027, and 8.6% for FY2028. This attractive yield has contributed to interest from non-institutional investors, although institutional demand has been weaker than expected.

Property Share Investment Trust is scheduled to make its debut on the Bombay Stock Exchange (BSE) on December 9, 2024. The debut is eagerly awaited, as it marks the entrance of India’s first small and medium REIT to the public market, offering new opportunities for investors in the real estate sector.