NEW DELHI: The initial public offering (IPO) of Bagmane Prime Office REIT, backed by Blackstone, was subscribed 23.71 times by the end of the bidding period on Thursday, demonstrating strong investor interest.
The IPO, valued at Rs 3,405 crore, received bids for 3,50,77,38,150 units against 14,79,21,000 units available, according to NSE data.
The institutional investor category saw a subscription rate of 25.25 times, while retail investors submitted bids 21.87 times the available quota.
More than 200,000 applications were recorded for the offer, surpassing previous REITs such as Knowledge Realty Trust, Nexus Select Trust, Mindspace Business Parks REIT, Brookfield India REIT, and Embassy Office Parks REIT.
Bagmane Prime Office REIT has raised approximately Rs 1,150 crore from anchor investors.
The public issue’s price band is set at Rs 95-100 per unit for this Bengaluru-based REIT, which specializes in developing Grade A+ office spaces.
The IPO consists of a fresh issue of units worth up to Rs 2,390 crore, along with an offer for sale (OFS) of up to Rs 1,015 crore by the selling unitholder.
Funds raised will be used to acquire the Luxor property at Bagmane Capital Tech Park (covering one million sq ft) and to partially finance a 93% stake acquisition in Bagmane Rio, which comprises the 1.1 million sq ft Bagmane Rio Business Park.
Bagmane Prime Office REIT’s portfolio includes six premium Grade A+ business parks, totaling 20.3 million square feet, strategically located in key Bengaluru micro-markets, such as the Outer Ring Road (ORR) and the Secondary Business District (SBD City).
Real Estate Investment Trusts (REITs) are investment vehicles that own or manage income-generating real estate, allowing investors to earn a share of the income produced without needing to directly purchase properties.
Currently, there are five publicly listed REITs in India: Sattva Group, Blackstone-backed Knowledge Realty Trust (KRT), K Raheja Corp-backed Mindspace Business Parks REIT, Brookfield India Real Estate Trust, and Embassy Office Parks REIT, along with Nexus Select Trust.
Of these, only Nexus Select Trust focuses on yielding rental income from retail real estate (shopping malls), while the remainder are office-focused REITs.
The book-running lead managers for this issue include JM Financial, Kotak Mahindra Capital Company, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM, and HDFC Bank.
