NEW DELHI: Bagmane Prime Office REIT, based in Bengaluru, has submitted its draft offer document to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) of up to ₹4,000 crore. This includes a fresh issue of units amounting to ₹3,000 crore and an offer for sale (OFS) of ₹1,000 crore by selling unitholders.
The REIT, sponsored by Bagmane Realty and Infrastructure LLP, manages a premium portfolio of Grade A+ office business parks focused in key office areas of Bengaluru. It encompasses 20.3 million sq ft of total area with 19.6 million sq ft designated as leasable space, achieving a committed occupancy of 97.9% as of June 30, 2025.
Bagmane Prime Office REIT’s assets include six major business parks: Bagmane World Technology Centre, Bagmane Constellation Business Park, Bagmane Rio Business Park, Bagmane Tech Park, Bagmane Cosmos Business Park, and Luxor at Bagmane Capital Tech Park. Additionally, the REIT owns two under-construction hotels with 607 keys and four solar power assets with a combined capacity of 164.4 MW (DC), diversifying its portfolio.
The tenant mix is principally composed of foreign multinational corporations and global capability centres (GCCs), which collectively account for nearly 99% of the gross contracted rentals. The weighted average lease expiry (WALE) of the portfolio is 7.3 years, offering a mark-to-market (MTM) potential of 20.3%. Furthermore, over 4.2 million sq ft of occupied space is projected to roll off between FY2026 and FY2030, providing ample opportunity for rental growth.
As of June 30, 2025, the gross asset value (GAV) for the REIT stands at ₹38,790 crore. Following the IPO, the loan-to-value (LTV) ratio is anticipated to be approximately 7%, indicating minimal leverage relative to regulatory constraints. The REIT forecasts a net operating income (NOI) of ₹2,670 crore in FY2027.
The draft offer document outlines that the net proceeds from the fresh issue will be allocated for strategic investments. A significant portion, up to ₹1,775 crore, is designated for acquiring Luxor at Bagmane Capital Tech Park, a completed office asset of one million sq ft. Furthermore, up to ₹1,025 crore will partly fund the purchase of a 93.00% stake in Bagmane Rio, which owns the 1.1 million sq ft Bagmane Rio Business Park. Any remaining funds will be reserved for general purposes, including operational needs, albeit capped at 10% of the total net proceeds.
JM Financial, Kotak Mahindra Capital, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM, and HDFC Bank are the book-running lead managers for the offer.
