Not wanting to repeat the HDFC IPO non-participation, I propose a new one to Dad in early 2019. This one is a REIT, a real-estate investment trust, the first of its kind, more like a bond, These are vehicles which pay 9+% in returns, backed by rental income from a portfolio of commercial properties. REITs are new to India, I have known of them from my time overseas. There is a more detailed post about them on this site. Since this is the first REIT to test out the market, it must be priced reasonably, the IPO marketing says it is even at a discount! Embassy Office Properties, owns some of the prime commercial properties in Bangalore, Manyata Tech Park for one, home to global IT companies, prompt payers of rent, long-term renters etc. etc.

I get the subscription forms, full of disclaimers in print so fine that I need a magnifying glass to see what it says. Must be deliberate, my eyes are not so bad! I subscribe Dad for 800 shares, expecting a smallish allotment, media hype is loud and raucous, the issue will be oversubscribed. The offer period for retail investors is over 3 days, we subscribe on day 2, and it is only 0.2x subscribed. As I wonder if I goofed yet again, the next day is when the rest of the country comes in, retail is 6.9x over-subscribed by the end of the period. My sigh of relief is tempered by “now Dad will only get allocated 40 shares!” Staff at the Centre tell me allotment is pro-rated like in other parts of the world.

With my online account, I also decide to subscribe for myself as well, only to be told that as an NRI, I am not permitted to participate in Indian IPOs. I am of course allowed to trade options, so why not IPO’s?

When EMBOFF opens for trading, I find that Dad has indeed got his full allotment of 800 shares. Whatever happened to pro-rating? Questions, questions.

Update: Since then, it is now September 2019, the stock is up 30% from IPO price, plus the rental income.