As an investor, it can be very challenging to decide whether the PropShare Celestia IPO is a good or bad investment. Not anymore. On this blog, we will provide you with all the necessary details about PropShare Celestia’s IPO to help you decide whether to apply or not. Read on to know the IPO risks, strengths, valuation, financial details, and expert opinion to make your investment decision better.Ā
PropShare Celestia IPO ReviewĀ
| Review By | Recommendation |
| IPO Watch |
Strengths:
- PropShare Celestia is situated in a premium, top-notch IGBC Platinum-certified, Grade A+ mixed-use commercial building, Stratum @ Venus Ground.
- The firm has an Average Lease Expiry of 6.72 years, meaning its tenants are committed for nearly 7 years, indicating stable cash flow.
- It is operated by an experienced investment and asset management team of 24 members, who manage the property effectively.
- The property is 100% occupied by a wide range of tenants, including 3 Fortune Global 500 companies, one Fortune 500 company, and other established tenants.
Weaknesses:Ā
- PropShare Celestia is a new investment vehicle with no operating history. Not operating its property effectively or generating enough cash flow can negatively affect the business.
- About 97.32% of the total area is leased to managed office providers and co-working space operators, who then rent it out to multiple companies (end users). If those companies face any problems will indirectly reduce the rental income.Ā
- Its income and profit are dependent on how the commercial real estate market performs in Ahmedabad, India. Issues like economic and market conditions can make it hard to rent out the property to good tenants.Ā Ā
- The tenant may leave, choose not to renew their leases, or fail to pay rent. If the spaces remain vacant or are not able to find new tenants can impact the performance.
Companyās Expansion
- A portion of ā¹237.91 crore from the fresh issue will be used towards the purchase of Project Celestia and payment of sinking fund to society by Celestia SPVs (the āProposed Acquisitionā), and reimbursement or direct payment, as applicable, of statutory charges under applicable laws (including stamp duty, registration, surcharge and cess etc. for the registration of sale deeds) to the Investment Manager for the Proposed Acquisition by way of lending to the Celestia SPVs and subscribing to the equity and debt instruments of our Celestia SPV.
- Lastly, the remaining funds will be used for the general corporate purposes.
Should You Apply or Not?
Want to invest in commercial real estate and earn income without actually owning the property? Then, you should invest in the PropShare Celestia IPO. The IPO will be open for subscription on the 10th of April. Instead of buying shares of the company, this scheme allows investors to become a part of the property, where they will not only earn rental income but also receive the benefits of rising property value.
PropShare Celestia, a 3rd SM Reit scheme located at a prime location of Nehru Nagar, Ahmedabad, at Stratum @ Venus Grounds. It is a grade A+ commercial building. Through this IPO, the trust is obtaining 7 floors of Stratum @ Venus Grounds, with a size of 2,07,838 sq. ft. The property is 100% occupied by 4 tenants and managed by 3 co-working operators: Smartworks Coworking Spaces Limited, EFC Limited (both publicly listed), and Paragraph Khajanchi Business Centre LLP, generating stable rental income.Ā
Financially, since this is a new trust, there is no operating history. However, based on the combined financial statements of its projects, in FY25, Total income of ā¹5.34 crore with a net Loss of ā¹20.02 crore. Moreover, PropShare Celestia is estimated to achieve a rental growth of 4.32% CAGR over 4 years.
PropShare Celestia is planning to launch six SPV projects. Meaning it will manage its property through six separate companies (SPVs):
- Cendrix Realty Private Limited
- Crestmont Realty Private Limited
- Dhrivya Estates Private Limited
- Magnivio Private Limited
- Samvrid Realty Private Limited
- Stathos Private Limited
As of March 9, the PropShare Celestia IPO GMP is ā¹0. Are you ready to become a part of a modern real-estate investment trust? Please let us know in the comments, and follow IPO Watch for such IPO-related insights.Ā
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the companyās RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
