Nexus Select IPO: Shares debut on Dalal Street at Rs 103 apiece

The category for Qualified Institutional Buyers (QIBs) got subscribed 1.32 times, while the non-QIB portion received 1.87 times subscription.

Nexus' IPO comprises of fresh issuance of Rs 1,400 crore, and an offer for sale of up to Rs 1,800. Post-IPO, the shareholding of Blackstone in Nexus Select Trust will come down to 43 percent from 60 percent. Select City Walk promoters' stake will reduce slightly to 24.3 percent from 25 percent.

Speaking to CNBC-TV18, Dalip Sehgal, ED & CEO, Nexus Select Mall Management emphasized that the funds raised would be primarily used to reduce the sponsor debt.

“In terms of usage of funds - is to pare the sponsor debt as is required by the regulation so that is where it would be used.”

One key factor that sets Nexus Select Mall Management apart from other Real Estate Investment Trusts (REITs) is its remarkable Loan-to-Value (LTV) ratio. Sehgal proudly stated that the company's LTV ratio stands at 15.5 percent, significantly lower than the industry average of 27-29 percent.

Sehgal highlighted Nexus Select Mall Management's impressive track record of annually adding 1.5 million square feet (msf) to its portfolio.

BofA Securities India, Axis Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), IIFL Securities, JM Financial, J P Morgan India, Kotak Mahindra Capital Company, Morgan Stanley India Company, and SBI Capital Markets are the managers to the offer.

Ahead of the IPO, Nexus Select Trust REIT raised Rs 1,440 crore via a fully subscribed anchor book. The anchor book has received investments from mutual funds and insurance companies like Brookfield Asset Management, Prusik Investment Management, Jane Street Capital, Key Square Management, Segantii Capital Management, HDFC Mutual Fund, IIFL AMC (asset management company) and ICICI Prudential Mutual Fund.

Nexus Select Trust has a portfolio of 17 operational shopping malls, including Delhi's premium Select City Walk, across 14 major cities covering a 9.8 million square feet area. It operates two hotels with 354 keys, and also office spaces as part of mixed-use development.