Brookfield India REIT IPO Review, Details, Share Price, Launch Date, News Next IPO 2021
Hello friends! Brookfield REIT IPO is coming soon. Everyone wants to know. I am not saying that everyone is interested in this IPO. But would you like to know how it works? What is your business model? How do you win If you invest in your IPO, it means you will get your units (not shares, I will distribute it if I go ahead), then I will talk about the future. How do I return it to you?
As you know, if you buy a stake in a company or invest in its initial public offering, the share price goes up when your business is doing well. In the case of REIT, we will talk about the key factors that will drive it and give investors a return (as in the case of stocks, this is the company's business) REIT-Real Estate Trust - what they are? How do they work?
Next IPO 2021
First, let me tell you that their business model is usually similar to mutual funds. Its structure is not like that of ordinary shares. (Like the promoters of a company) In this case, the sponsors are the owners of the companies. Investors invest their money here and the money is kept in one place. There is more investment in trust. So that you, as the owner of the unit, can benefit from it. Let's see how it works.
The trust invests in real estate for a variety of purposes. They usually invest in commercial property and park construction. Rental income is derived from these sources. These companies also provide loans for real estate construction. The revenue from these sources reaches the investors. From here you can see that in this case sponsors put all the money and invest more in it. (As in the case of mutual funds, there are fund managers)
Part of the unit has been delivered to you at this REIT. (The amount of your investment as an investor) This is the REIT business model. The next part (after understanding your business model) that we will discuss in detail is about the factors that contribute to the income of investors. In general, there are three things that make money for REITs. In addition, you benefit from the profits made through REITs.
The first is rental income. We say that a REIT has built a commercial property and rented it out as much as possible. Every rent received from this source will benefit the business as it is an income. From a revenue standpoint, REIT benefits from this.
Let's talk about the revenue that can be passed on to your shareholders through REITs. Suppose REIT has earned 100 rental income from commercial property. The company will charge Rs 90 for operating expenses. 100 minus 90 rupees. Rs 10 is the operating profit of the company. The company has to transfer this income to 90 shareholders (ie RS10) as profit.
In this case, the company has an income of Rs. 100 in the form of rent. The cost of the company is Rs. Rs 10 is the operating profit of the company. Of this, Rs. 90-9 is distributed to different participants in different parts of it. This is the first and most important source of income when investing in a REIT. Another source of income is interesting. Interest is earned by giving interest to someone. Let's see how these trusts have been borrowed.
Usually do not invest directly in the property. They make their own SPV. Their full form is special purpose vehicles. He owns several properties and loans to SPV for property construction. This trust makes them money. In return, they receive interest.
This interest is income for the trust. If it is a trust income, it will be given to you. Because you bought some trust units. Here are three key points to keep you going.
You know that their units will become commonplace. When the price goes up, whatever is listed on the stock market will benefit you. How do prices rise? In general, a company's stock price rises because of its business expectations. If investors think that a business has a lot of potentials, they will invest here. As demand increases and supply is limited, the market value of shares automatically increases.
Here are three different ways to get REITs that can benefit you (by investing here). I told you about different methods. I'm not saying you will benefit. These are the different ways/factors that get your valuation (as in the case of a company, these factors are higher operating profit margins, lower debt, higher profits, higher growth, etc.).
Now let's talk about the industry. Demand for offices (from A1 grade offices to multinationals) has increased by 5% in the last 5 years.
Another significant increase in demand is the need for office space in Mumbai, Bangalore, and NCR. Demand has been important. Also, rental income has increased in recent days. (Excluding Quaid Time)
Let's talk about the effects of code. Revenue for the first half of fiscal year 21 (September) fell 26 percent from the same period last year. This industry was severely affected by the code (if you look at the various steps)
Second, let's talk about rent and prices in this industry. These figures are very attractive. Here we have compared India's rent per square foot with other countries. In comparison, you will find that the rent in India is lower than other companies.
In the future, increasing demand will benefit the industry. Along with the prices, the prices are also attractive. Compared to other countries in the world, Indian rates are shown. (the US per square foot per month)
In London, the price is 11 11.4 per square foot. The highest price in Mumbai is ڈالر 1.8 per square foot. Prices in Bangalore and NCR are around $ 1.2 per square foot. Now you want to know about the key drivers of demand in the office space industry. Here you will have the opportunity to work out more REITs in commercial real estate.
Technology is a major driver of demand, with 37.6% used. In addition, the banking sector and professional services use 11.7% and 8.8%, respectively. You can also view other information.
Company revenue and profits
Now let's talk about the company's financing these days. First I will talk about the company's revenue and profits. Assets are important to this company because it operates in the real estate sector. As you can see on my screen, it shows assets, income, and PAT from March 31, 2018, to September 30, 2020.
Here you can gauge the company's performance in recent days. Talk about income first. In 2018, the company's revenue increased from Rs 866 crore to Rs 929 crore in 2019. It increased to 9,681 crores in 2020. One aspect of a company's revenue is this: not much growth. In the company's revenue.
In 2018, the company's profit was 1115 million. In 2019, the company became a loss-making company with a loss of Rs 150 million. In 2020, the company made a profit of Rs 150 million. As of September 30, 2020, the company has made a profit of Rs. 4667 crore and negative Rs.
The company is still in deficit. Let's talk about the company's assets. The company has not seen a significant increase in assets in recent years. Its assets increased from Rs 4,893 crore in 2018 to Rs 5,136 crore in 2020. The company's net profit margin is negative at 15%. The company has a debt of Rs 6,600 crore. These are just some of the common goal-setting programs you can use.
Its industry rivals include two companies: Embassy and Mindspace. The REITs of these companies are also traded publicly. You can refer them to them for your research. Now we come to the part where we talk about the middle ground. We will first talk about the investment profession. The first is that the dynamics of the industry are likely to improve in the near future. Because per capita consumption is now very low. There has been decent progress in recent days.
Another big investment supporter is your brand. You may have heard of your sponsor Brookfield. It is a very big global company. (Alternative assets) The assets you manage are very large. REIT is a global brand that makes this company interesting. The company's properties are strategically located in Mumbai, Noida, New Delhi, and Kolkata. In recent times, most of the properties it has built-in Kolkata are equipped with new facilities. The issue of rent cannot be seen here as notable facilities lead to higher chances of rental income.
Let's talk about the cons. The level of debt of the company is very high. The company's interest coverage ratio is still less than 1. You should think about this before investing. The company has reported losses in recent days. But he made a profit in one year. The main reason behind this was the second entry of the company which could not get out of its core business. The company's profit comes from its future valuation. Therefore, you need to look in detail: the losses to the company and the reasons behind the company's future strategy. (Moving on from lost business profits)
IPO details
Now let's talk about the details of IPO. These details are important so you know if you want to bid here. The company has a total initial public offering of Rs 3,800 crore. The whole IPO is a new title. The company is introducing a new unit that will be handed over to shareholders if they invest here. The price of IPO remained between Rs.
You must bid for at least 200 shares (1 lot). Generally, you have to bid Rs. 14,000 for the initial public offering. Here you have to bid around Rs 5,000. The IPO will open between February 3 and 5. You can bid for this time. Its provisional listing date is February 17. In the future, you will find out if this changes.
So today we took a look at the Brookfield REIT IPO. Hope you enjoyed today's article.
We try to explain the whole thing in simple words so that you do not have any doubts/complications. You can use this information and do more research to decide whether to invest in this initial public offering. After all the research, make the right decisions and invest for the long haul. If you make a long-term investment (avoid speculation) you can make a good income, hopefully, you will do a lot of research and then make a good investment.
Comment below: Should we apply for an initial public offering or not?
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We bring all subjects for educational purposes. We do not recommend buying or selling stocks. Do your research before investing in stocks, and then invest for the long term.
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