The trust sold 111.3m units through a qualified institutional placement on Tuesday after markets closed in Mumbai.
Bookrunners Axis Capital, Bank of America, HSBC, IIFL Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley launched the deal with a floor price of Rp348.38 per unit.
The nascent Indian Reit market has drawn strong demand from foreign and domestic investors, and Embassy’s trade was no exception, said the source. After taking orders through the evening, the banks closed the book nearly two times covered. The turnout was also impressive given that primary markets typically slow down by December, added the source.
The syndicate still opted to price the deal low, however. India’s securities regulator allows for pricing at up to a 5% discount to the floor price, which the banks took full advantage of, sealing the QIP at Rp331.00.
The final price offers investors a 6.88% discount to Embassy Reit’s Tuesday close at Rp355.45. The stock was trading down 0.44% on Wednesday afternoon at Rp353.90.