In a sign of abundant liquidity chasing Indian stocks, Blackstone-backed Embassy Office Parks REIT, and state-owned lenders Punjab National Bank (PNB) and IDBI Bank on Tuesday launched their respective share sales through a qualified institutional placement (QIP) offering, collectively seeking to raise up to ₹12,677 crores.
Embassy REIT, which launched the first follow-on institutional share sale by a listed REIT in India, is looking to raise up to ₹3,677 crore, according to the deal terms seen by Mint.
While the floor price for the deal is fixed at ₹348.38 per unit as per the formula prescribed by the Securities and Exchange Board of India, the REIT is offering the shares at an indicative offer price of ₹331-335 per unit. The offer price is at a discount of 5.8-6.9% to the last closing price of ₹355.45 on BSE. Investment banks Axis Capital and Morgan Stanley, among others, are advising Embassy REIT on the share sale. It will use the capital to fund the acquisition of Embassy Tech Village assets from affiliates of sponsors Embassy Group and Blackstone Group, and other shareholders for around $1.3 billion.
PNB, which also launched its QIP on Tuesday, has set a base issue size of ₹3,500 crore but can increase the deal to ₹7,000 crore, depending on demand. It is looking to sell shares at an indicative offer price of ₹35.50 per share, at a 12.56% discount to its closing price of ₹40.6 on NSE, shows the deal terms seen by Mint.
“Our bank intends to utilize the net proceeds towards augmenting the bank’s tier I capital to meet Basel III and to support growth plans and to enhance the business of our bank; and/or general corporate requirements or any other purposes,” PNB said in an offer document. Investment banks ICICI Securities, Axis Capital and Edelweiss are advising PNB on the share sale.
IDBI Bank has set a base issue size of ₹1,000 crore for its share sale but can raise it by another ₹1,000 crore. The lender is looking at a price band of ₹38.6 per share at an 8.96% discount to its last closing price of ₹42.4 on the NSE.
