BENGALURU Blackstone-backed Mindspace Business Parks’ shares rose as much as 11.71% in their market debut on Friday, showing investor confidence in the real estate sector even as many Indians work from home due to the COIVD-19 pandemic.
Mumbai-based Mindspace operates as a real estate investment trust, and controls property with a total leasable area of 29.5 million square feet with tenants including Amazon.com and Barclays.
Its shares opened trading at 302 rupees, higher than the initial offer price of 275 rupees, giving the company a market value of 179.09 billion rupees ($2.39 billion).
India has seen coronavirus cases surge as its cities sought to emerge in recent weeks from one of the world’s strictest lockdowns, and millions of office workers are still working from home.
Interest in the real estate market, however, points to expectations that the country’s huge role in global services will only be reinforced by a coming recession, drawing a wave of new investment.
“Undoubtedly, there was a dip in demand for commercial spaces – especially during the lockdown period when there was no activity due to the pandemic,” said Anuj Puri, chairman of Anarock Property Consultants.
“However, now we are gradually seeing demand for commercial spaces pick up in key cities.”
Shares of Mindspace were trading up 10.6% at 304 rupees as of 0633 GMT.
($1 = 74.9750 Indian rupees)
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