Indiabulls Real Estate Ltd, India’s fourth largest listed real estate developer, raised S$262 million (Rs818 .7 crore) from its offering of a real estate investment trust (Reit) in Singapore, less than the S$285 million the company had sought.
The initial public offering (IPO) of 262 million shares closed on Friday.
Indiabulls Properties Investment Trust fixed the price at the lower end of the price band at S$1 per share, the company said in a filing with the Singapore stock exchange. It had sought between S$1 and S$1.10 a share.
The offer was to close Thursday, but Indiabulls had to extend the share sale by a day, after it failed to attract the 1,000 retail investors required for a listing.
“There is not much appetite for property trusts.,” David Lum, an analyst at Daiwa Institute of Research in Singapore, said. “The last IPO we had was in November and we dont expect one to happen in the next few months. I think the poor demand is reflective of the weak market conditions,” he said.
Company officials declined to comment because of a rule requiring them to observe a “silent period” ahead of the listing on June 11.
L.N. Mittal, chief executive of Arcelor Mittal, the top global steel firm, had earlier acquired 91 million shares in the unit as an anchor investor, meaning Indiabulls Real Estate raised a total of S$353.5 million. Deutsche Bank AG and Merrill Lynch (Singapore) Pte arranged the share sale.