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NEXUS SELECT TRUST IPO

IPO Details

ICICI Direct Research Rating : SUBSCRIBE
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150 shares
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₹ 95 – 100
₹ Up to 3200 crores

Issue timeline

  • -
  • 16-May-2023
  • 17-May-2023
  • 19-May-2023
  • 19-May-2023

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- Owner of India’s leading consumption centre platform of high-quality assets that serve as essential consumption infrastructure for India’s growing middle class (Source: CBRE Report, by Completed Area, Company DRHP)
- It's portfolio comprises 17 best-in-class Grade A urban consumption centres and assets are strategically located across 14 leading cities in India(Source: Company DRHP)

Strengths & Risks

Strengths (3)

Largest platform of best-in-class assets with a pan-India presence
The India’s largest consumption centre platform (Source: CBRE Report, by Completed Area), with a portfolio of 17 urban consumption centres that are strategically located across 14 prominent cities which represented 30% of India’s total discretionary retail spending in FY20 (Source: Technopak Report and Company DRHP)

Risks (2)

The proposed holding structure of the Portfolio may not be tax efficient
A part of company's Portfolio is proposed to be held through a one-tier structure and the remaining held through a two-tier structure which may result in certain tax leakages on the account of levy of minimum alternate tax on dividends received by Holdcos from Asset SPVs.(Source: Company DRHP)

  • Largest platform of best-in-class assets with a pan-India presence
    The India’s largest consumption centre platform (Source: CBRE Report, by Completed Area), with a portfolio of 17 urban consumption centres that are strategically located across 14 prominent cities which represented 30% of India’s total discretionary retail spending in FY20 (Source: Technopak Report and Company DRHP)

  • Best-in-class assets that are premium shopping and entertainment destinations
    Their assets are located in prime in-fill locations with connectivity to local transport systems. Due to their scale, quality, tenant mix and proactive asset management approach, they have witnessed 122 bps higher CAGR in Marginal Rents between CY16 and CY19 (Source: CBRE Report and Company DRHP)

  • Deep tenant relationships driving strong tenant retention and tenant sales growth
    The company has well-established relationships with many key retailers in India and they maintain regular communication with leasing heads of their tenants through a dedicated tenant relationship management program, which ensures that they anticipate and cater to growth plans(Company DRHP)

  • The proposed holding structure of the Portfolio may not be tax efficient
    A part of company's Portfolio is proposed to be held through a one-tier structure and the remaining held through a two-tier structure which may result in certain tax leakages on the account of levy of minimum alternate tax on dividends received by Holdcos from Asset SPVs.(Source: Company DRHP)

  • A decline in footfalls in thier urban consumption centres has in the past, and may in the future, affect business
    The success of business is highly dependent on the number and profile of consumers that visit urban consumption centres.Some of the factors affecting consumer profile, consumption behavior and footfalls are beyond control and therefore they cannot assure that they will be able to maintain and attract the desired numbers, which may in turn adversely affect business (Source: Company DRHP)

Financials

Net Worth
Total Income
Total Borrowings
Profit/Loss after tax
Basic Earning per Share (EPS)

Industry Overview

- Rising Middle-Class: Income levels in India are increasing at a rapid pace, which is demonstrated by a robust growth in its middle-class and high-income households. Number of middle-class households grew at a CAGR of 14.8% between FY10-20, increasing its mix from 23.7% to 73.1% over the period. This segment is further projected to grow and is estimated to represent approximately 79.0% of households by FY30.
- Stable Inflationary Environment : India’s consumer price index (“CPI”) inflation stood at 5.1% in CY21 vis-à-vis inflation CAGR of 4.6% from CY16-21. The inflation levels from CY15 to CY19 were consistently below 5.0% levels. While global commodity prices led to domestic price increases, the impact has been subdued on the back of fiscal and monetary measures announced by the central government.(Source: Company DRHP)

vishal-mega-mart IPO

Nexus Select Trust IPO

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150 shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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