The Property Share Investment Trust (PSIT), India’s first small and medium Real Estate Investment Trust (SM REIT), has opened its initial public offering (IPO) for subscription today, December 2, 2024. This marks a significant milestone in the Indian real estate market, offering investors a chance to invest in a diversified portfolio of premium commercial properties.
Key Details of the IPO
The IPO is a book-built offering, with a target of raising around ₹352.91 crore by issuing 3,361 new units. The price band for the IPO is set between ₹10,00,000 and ₹10,50,000 per unit, with a minimum application size of one unit, requiring an initial investment of at least ₹10,00,000.
The subscription window will remain open from December 2 to December 4, 2024, with the basis of allotment expected to be finalized on December 5, 2024. The REIT units are expected to be listed on December 9, 2024, on either the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE).
Founded in June 2024, Property Share Investment Trust is a SEBI-registered REIT that specializes in small to medium-sized real estate properties. Its inaugural scheme, PropShare Platina, comprises six wholly owned Special Purpose Vehicles (SPVs), in line with SEBI’s REIT regulations. The focus of this trust is on acquiring and managing prime office spaces that generate steady rental income.
Investors can apply for the IPO through their brokers or online platforms. The minimum bid size is one unit, making it accessible for investors with a starting capital of ₹10,00,000.
The REIT has already received in-principle listing approval from the Bombay Stock Exchange (BSE) on November 12, 2024. This approval further ensures the transparency and credibility of the investment.
The Property Share REIT IPO offers investors a distinctive chance to tap into India’s expanding commercial real estate market. With its attractive income potential, professional management, and liquidity, the IPO appeals to both seasoned and first-time investors seeking diversification and steady returns. However, it’s important to recognize the risks involved in order to make a well-informed decision.
