Embassy office REIT received success in its IPO.

By Abhay Harish Shah , Realty Quarter

Real Estate Investment Trust (REIT), helps an investor to invest in real estate which is been already approved by the Security and Exchange Board of India (SEBI). Most REIT companies, trade on stock exchanges and they provide many benefits to their investor.

REIT received a positive response in its IPO meanwhile REIT is India’s first Real Estate Investment Trust who accommodates investment money and produce it in commercial property.

The Initial Public Offering (IPO) done by Embassy Office Parks REIT has received oversubscription on the second day of bidding.

The Blackstone-backed REITs’ Rs 4,750 crore IPO, which shut on Wednesday, has been bought in 2.6 times. Bids were gotten for more than 181 million offers against 71.3 million on offer, NSE information appeared.

The IPO opened for membership on 18 March 2019 and it shut on Wednesday, 20 March 2019. The value band for the issue was fixed at Rs 299 to Rs 300 for each unit. Least application was for 800 units (i.e., Rs 2.4 lakh at a more expensive rate and Rs 2.39 lakh as lower cost) and in multiples of 400 units from there on.

The classification held for institutional financial specialists was bought in 59% and different speculators 32%, as indicated by the trade information till around 5 pm (IST).

Shobhit Agarwal (MD and CEO of Anarock Capital) says “REITs guarantee to be a noteworthy internal confronting channel for foreign institutional investments as well as impressive individual ventures. Given that the business is still gotten in the prongs of an unwavering liquidity smash, there couldn’t be a superior time than this for remote and local financial specialists to siphon assets into the real estate market through REITs”.

Experts say “Investing in REIT is a profitable step as the company has to pay 90% of their taxable income to their shareholders (annually) in the form of Dividend”.

Individuals who are probably going to put resources into Real Estate Investment Trust (REIT) should realize that the genuine rate of profitability will be determined in the wake of considering all the taxes. Different elements like Individual salary charge pieces, holding period and different wellsprings of pay will likewise be noted down.

REIT is considered as a speculation plan for a person who is searching for diversification and liquidity for their fund. As this isn’t associated with some other resources terms, REIT is been said to be the best venture plot with generally safe and exceptional yield.