1. At a Glance
A ₹473 Cr SM REIT IPO with 1 unit priced at a mind-melting ₹10–10.6 lakh. Backed by Property Share Investment Trust (Axis Trustee onboard), the Titania office park promises premium real estate yield. Retailers beware: the minimum bid is a full ₹10,60,000.
2. Introduction with Hook
Imagine walking into a dealership where you can’t buy one car but must buy an entire showroom. That’s PropShare Titania’s IPO for you. This isn’t your usual ₹14 per share Zomato-style gamble. This one’s built for real estate moguls in disguise.
- IPO Size: ₹473 Cr
- Issue Price Band: ₹10.00–10.60 Lakh per unit
- Minimum Investment: ₹10.60 lakh (1 share per lot)
- Target Yield: 9% FY26–28, 8.7% FY29
So… legit passive income or just REIT wrapped in IPO makeup?
3. Business Model (WTF Do They Even Do?)
PropShare Titania is the second scheme under Property Share Investment Trust — a SEBI-registered Small & Medium REIT.
- Primary Asset: Titania SPV — a commercial office project in MMR-Thane
- Revenue Source: Rental income, capital appreciation
- Structure: Trust owns 100% of SPV → SPV owns the property → Tenants pay rent
- Tenants: Long-term leasing expected in Grade A offices
- Trustee: Axis Trustee Services — REIT, AIF, family trust expert
Basically, they rent swanky offices so you can Netflix & Chill while the rent rolls in.
4. Financials Overview
While full financials of the Trust aren’t publicly audited (yet), here’s what we know:
| Metric | FY24 (Pro Forma) |
|---|---|
| Asset Value | ~₹640 Cr |
| Net Operating Income (NOI) | ~₹40 Cr |
| Yield (Estimated) | 8.5%–9.0% |
| NAV | ~₹9.5–10 Lakh |
- Debentures in SPV: ₹232.94 Cr to be extinguished post-IPO
- Equity Acquisition Cost: ₹217 Cr
The trust is being built on structured debt resolution + real estate rental math.
5. Valuation
Valuation here isn’t P/E but Yield on NAV. Let’s decode:
a) Implied NAV Method
If NAV is ₹9.5–10 lakh, and price is ₹10–10.6 lakh → Premium of ~6–11%
b) Yield Valuation
- NOI: ₹40 Cr
- Implied Market Cap (Post Issue): ₹473 Cr
- Yield = ₹40 Cr / ₹473 Cr ≈ 8.45%
Pretty much matches what they project.
Fair Value Range:
- ₹9.3 – ₹10.1 Lakh/unit (based on NAV & cap rate)
High yield = high risk? Only if MMR offices become ghost towns.
6. What’s Cooking – News, Triggers, Drama
- REITs 2.0: Titania is the first SM REIT IPO of this size
- Axis Trustee’s involvement → Institutional trust, literally
- SEBI’s SM REIT Relaxations → New norms, more flexibility
- Rental Deals Pending: Leasing pipeline will make or break post-listing stability
- Unitholder tax efficiency – subject to capital gains rules post listing
Oh, and a ₹10.6 lakh minimum ticket size means your cousins can’t hype this one on Twitter.
7. Balance Sheet
Pre-IPO SPV Snapshot (Approx)
| Item | Amount (₹ Cr) |
|---|---|
| Equity (Titania SPV) | Negligible (to be acquired) |
| OCDs (Debentures) | ₹232.94 Cr |
| Assets (Commercial Property) | ₹640 Cr |
| Liabilities (post IPO) | Near Zero |
Key Points:
- Post IPO, debt-free SPV
- Full equity acquisition = full control
- Clean rental flows to Trust = Predictable returns
8. Cash Flow – Sab Number Game Hai
| Particulars | FY26E | FY27E | FY28E |
|---|---|---|---|
| Gross Rental Income | ₹50 Cr | ₹54 Cr | ₹58 Cr |
| Operating Expenses | ₹8 Cr | ₹9 Cr | ₹10 Cr |
| NOI | ₹42 Cr | ₹45 Cr | ₹48 Cr |
| Distributions (90%) | ₹37.8 Cr | ₹40.5 Cr | ₹43.2 Cr |
| Distribution per Unit (Est.) | ₹80,000–₹90,000 |
Key Points:
- Solid cash yield potential (~8.5–9%)
- 90% of cash flows to be distributed (REIT rules)
- Growth depends on rental escalation + occupancy
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| NAV / Unit | ₹9.5–10 Lakh |
| Yield (FY26–28) | 9% |
| Leverage | Post IPO: 0% |
| Target IRR | ~11–12% (incl. appreciation) |
Sexy if it executes. Stressy if leasing stalls.
10. P&L Breakdown – Show Me the Money
| Year | Rental Income | Expenses | Net Income |
|---|---|---|---|
| FY24E | ₹0 Cr (pre-leasing) | ₹0 Cr | ₹0 Cr |
| FY26E | ₹50 Cr | ₹8 Cr | ₹42 Cr |
| FY27E | ₹54 Cr | ₹9 Cr | ₹45 Cr |
Key Points:
- Full rental income only from FY26
- This is a future-yield product
- Passive returns depend on tenancy stability
11. Peer Comparison
| REIT Name | Price/Unit | Yield | Debt | Asset Type |
|---|---|---|---|---|
| PropShare Titania | ₹10–10.6L | 8.5–9% | 0% | Single asset (MMR) |
| Embassy REIT | ₹310 | ~6.5% | Moderate | Pan-India, diversified |
| Mindspace REIT | ₹345 | ~7% | Moderate | Multiple cities |
| Brookfield REIT | ₹270 | ~7.2% | Moderate | Mixed assets |
Titania is expensive in absolute terms, but competitive in yield.
12. Miscellaneous – Shareholding, Promoters
- Promoter: Property Share Investment Trust
- Trustee: Axis Trustee Services
- SPV: Titania SPV (to be 100% acquired)
- Registrar: KFin Technologies
- Lead Manager: Kotak Mahindra Capital
Retail access is more symbolic. The real players are QIBs and HNIs with chequebooks heavier than our opinions.
13. EduInvesting Verdict™
The PropShare Titania IPO isn’t your regular chai-samosa IPO. It’s a fully loaded biryani meant for yield hunters with deep pockets and tax optimization in mind.
- Clean structure, no leverage = ✅
- MMR-Thane asset = ✅ (if demand sustains)
- ₹10.6L minimum = ❌ for mango people
- IRR potential = 10–12% (Yield + Capital Gains)
- Tenant risk & illiquidity = ⚠️
Final Take: If you’re a seasoned investor wanting commercial real estate exposure without touching cement, this one’s for you. Just don’t expect it to “list at 100% premium” — this is REIT, not Reddit.
Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: PropShare Titania IPO, SM REIT, Axis Trustee, Office REITs, Kotak Capital, MMR Thane
