Brookfield REIT IPO Review

2021 has started with a long list of IPOs and one more IPO is on the way. Brookfield REIT IPO review gives all the important information that will help you in making the right investment decision. 

With a mission to offer you complete information on each IPO, we welcome you will a guide covering the details related to Brookfield REIT IPO.

So, let’s begin! 

However, before delving into the Brookfield REIT IPO, let us understand what is an IPO and how does it work?

IPO is commonly known as Initial Public Offering and it is a method to provide the first sales of the private listed company to the public. The capital from the retail investors and traders is raised through the process of IPO.

Major companies went through the IPO process since they want to get listed on the exchanges of the stock market such as NSE, BSE, MCX, or NCDEX.

Thus, by choosing the IPO, a private firm undergoes a public process and provide its shares with a goal to generate income and expenses every day along with other specific requirements that vary from company to company. 

Learn More: Why do companies go public in the stock market? 

However, listing the shares on IPO requires to follow a long process following a formulation of DRHP or Draft Red Herring Prospectus which contains all the details of the IPO includes lot size, offer sale, sale price, promoters, etc.

They are shared with the Exchange board of India namely SEBI (Securities and Board Exchange of India)

Once the SEBI approves their DRHP, the shares are ready to arrive in the stock market. 

Now, let’s jump to the main Brookfield India REIT IPO review. 

Brookfield REIT IPO Details 

So, how do you plan to invest in a company? 

Well, you don’t go blindly by just focusing on the rumors rather you initially obtain clear and precise information of the company’s objective, goals, operations, and all other major details. 

So, before you plan to cook your meal in this IPO, let’s have a background of the company. 

Surprisingly, Brookfield REIT is the only public commercial real estate vehicle company in India that is managed institutionally.

Besides this, it is sponsored by BAM, which is also known as Brookfield Asset Management, affiliation. 

Do you know that under management, Brookfield is India’s largest asset managers with assets of more than 550 billion (US Dollar)?

The firm is well-known in the market to create high-quality commercial real estate products by taking a one-step ahead in the technology and services level. 

The company is well instituted in India with major quarters at Mumbai, Kolkata, Gurugram (earlier known as Gurgaon), and Noida. 

Importantly, its clients are not just anyone! Rather some big giants of the business world are their customers such as Accenture, RBC, TCS, Cognizant, Barclays, Bank of Ameria Continuum, and many more. 

Now, let’s have a quick detail about this size! 

 

• As per the Brookfield REIT IPO review, the opening date is 03 February 2021 and will last for two days only i.e. till 05 February 2021. 
• The Brookfield REIT IPO Price will range from Rs. 274 to Rs. 275 per equity share and will be listed on BSE and NSE. 
• If we talk about the Allotment date, then it will be 11 February 2021. 
• Further, in 1 lot there will be around 200 shares, which means that an initial investment of Rs. 55,000 (minimum) will be applicable for a retail investor. 

Also Read: How to apply for Brookfield REIT IPO in India?

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Brookfield REIT IPO Objectives

It’s a definite truth that a company stepping in the IPO must have a specific objective. Either to want to raise capital, or it wants to clear its debts, or it wants to establish itself in other parts of the world.

But, whats the objective of Brookfield REIT IPO? 

• To meet general corporate targets. 
• To raise money in order to clear its debts of assets SPVs – which can be full or partial. 

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Brookfield REIT IPO Promoters

Now, if we talk about its promoters, then the following are the company’s promoters: 

• BSREP, known as Brookfield Strategic Real Estate Partners, India Office Holdings V Pte Ltd. 

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Brookfield REIT IPO Pros

Covering the Brookfield REIT IPO review it is now clear that the company is well known in the market and is believed to create small chunks into a king’s ransom. 

Although there are certain advantages of IPO investment, however, today we are specifically going to discuss other significant advantages of investing in Brookfield REIT. These pros are listed as below-

1. Strong external and internal growth opportunities. 
2. The company’s performance has been excellent over the few years. 
3. Brookfield India REIT is known to have an experienced and cycle-tested senior management staff.
4. The company has placemaking capabilities. 
5. The company has a diversified portfolio with a strong and steady cash flow. 
6. And most importantly, they have global sponsorship with local expertise. 

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Brookfield REIT IPO Cons

Obviously, there are always two sides to a coin- a good one and a bad one. Perhaps, we have already discussed the good ones in the section given above, let’s have a look at the bad ones too. 

Also, Read Some common disadvantages of IPO

So here are some of the cons enlisted after summarizing Brookfield REIT IPO review-

1. The minimum investment in this IPO is pretty huge. 
2. The company’s objective is not profitable since it has only emerged as an IPO to clear its debts.

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To Sum Up

With all such important information regarded to Brookfield REIT IPO review, you must be able to decide whether you wish to invest in this IPO or not. But, if you want to hear us, then we are a little doubtful too!

And, why is that? 

Because a company that tends to clear its debts from retail investors by making a minimum investment of Rs. 55000 (the price of 1 Lot) seems to be risky. 

So, on the off chance,  the investment can work or may not work in your favor! 

As it is said that “Numbers never lie, after all: they simply tell different stories depending on the math of the tellers ”- Luis Alberto Urrea.

Therefore, we recommend you check the financial reports of the company and analyze them carefully before making a huge investment ad make a wise and well-calculated decision. 

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