InvestorQ : Is it true that Mindspace has decided to put off its proposed REITs IPO scheduled at the end of this financial year?
Juvina Maggie made post

Is it true that Mindspace has decided to put off its proposed REITs IPO scheduled at the end of this financial year?

Answer
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Anamika Sodhani answered.
7 months ago


Not exactly but they are probably rethinking the launch date till there is clarity on the dividend tax issue. Mindspace is jointly owned by the Raheja group and Blackstone of the US. Both were going to partly exit their stake in the REITS IPO. While REITs were permitted and the necessary legislation enacted in 2014, the first REIT IPO of Embassy REIT only happened in March 2019. The Embassy REIT has done extremely well to give 30% returns in the last one year. However, the Budget 2020 announced the scrapping of DDT, just as Mindspace was planning to launch the second REITs IPO in India. While Mindspace has not put off the IPO plans, it has decided to go slow on the road shows and that could be a clear indication that the timing of the IPO could be put off till there is total clarity on the dividend tax front as it could change the economics. The issue will most likely wait for clarity on that.