There have been many IPOs in the last few months. And there have been good growth in almost all IPOs. But do you know now that the IPO of Brookfield REIT is coming is connected with real estate?
Brookfield REIT(India Real Estate Trust) IPO Details:
|IPO Name||Brookfield REIT|
|Price band||₹274- ₹275 / Equity share|
|Lot Size||200 Shares Per Lot|
The entire Brookfield REIT IPO is worth 3800 crores. And you have to bid ₹55,000, which comes with 200 shares.
Brookfield REIT’s IPO is scheduled to begin on 3 Feb 2021 and will continue till 5 FEB 2021. If you want to buy Brookfield REIT IPO then you have to pay approx ₹55,000 Per Lot.
The price of the stock of IPO will be from 274 to 275. And when it comes to a lot size, its lot size is 200 shares Per lot. It’s per equity share value is ₹10.
The Credit shares to the demat account will be on 12 Feb 2021 and the IPO Listing date will be 17 Feb 2021.
Brookfield REIT Business Module
REITs are investing their money in real estate, and they earn from that. And this investment is made for different purposes. REITs invest in commercial Parks, commercial Buildings and from that building and parks rent they earns profits.
these trusts invest money in real estate and make profits and earnings from the rentals. It’s one example REITs give their property on rent, and they get income from the rent that comes from it.
According to foreign countries, Not many REITs in India at the moment, and there are very few rents as per square feet in India compare to other countries like US, Singapore, UK, etc.
$11.4 per square feet in the US and in the India per square feet is $1.8.
Brookfield REIT Fundamentals
The big companies in India and abroad MNC’s are the clients of Brookfield REIT. And Brookfield hudge properties are located in MUMBAI, GURUGRAM, KOLKATA, NOIDA.
Profitable growth has been seen in the company’s last few years. There has been little loss in the company due to the lockdown during Corona’s time. According to last year, there is a 26% drop in the first half of the financial year 2021.
Due to Covid-19 there is huge bad impact on Real Estate Industry.
Indian Market Overview:
The demand for office space in India is increasing. Many real estate companies have not made much profit from the work from home due to COVID 19. But office space can be seen growing later.
India’s per capita office stock of 0.4 sf is quite low. And other countries like US 16.4 Square Feet, Hong Kong 8.6 square Feet and Singapore 5.2 square Feet, Australia 3 .2 Square Feet, and China 0 .5 Square Feet, which is much higher than India.
These markets have seen a total of 163 .4 MSF absorption in 2015 and Q1 2020.
Growing Population And Employment:
The population in India is very high, and employment is also increasing. So on the same basis, the office space is also growing.
If we compare with the United States, the growth of office space in India has not been much. And its office space in India is expected to grow.
How Shareholder Earns from REITs:
Rental Income As Dividend:
From the rent: 90% of the money left after the expenses in profit is paid to the Unitholders as Dividend.
Example as when the company gets a rent of 1000 rupees, then the Expense cost comes out to be 60 rupees, and 90% of the remaining 40 rupees is to be held as a dividend to their shareholders or Unitholders.
As per SEBI rules REITs have to share 90% of their profits to their unitholders. And It will get through Dividends.
The company pays dividends at least twice a year.
Stock Price Gain:
Now when the company is listed as NSE and BSE, Brookfield REIT shares will also be traded. If the company performs well and investors see growth in the future.
After a good investment and demand in the company, the company’s share price can rise, and the shareholders will a get good profit.
You can get good profits only if the company performs well and if shows good growth.
Should Invest Brookfield REIT IPO?
See REITs are not listed much in the Indian market. It is not long before REITs started in India. And we don’t have many options to invest in REITs.
You can expect 5 or 6% dividends twice a year from REITs. If you want to invest in real estate but with less amount, then you can invest in REITs. Maybe you can give good returns from this FD