NEW DELHI: The IPO of Bagmane Prime Office REIT, backed by Blackstone, saw a 71% subscription on its first day of bidding on Tuesday.
According to NSE data, bids were received for 10,55,39,250 units against 14,79,21,000 units on offer.
The subscription rate for the category of other investors was 74%, while institutional investors subscribed at 69%.
Furthermore, Bagmane Prime Office REIT has raised approximately ₹1,150 crore from anchor investors.
The ₹3,405-crore public issue will close on May 7.
The price band for the Bengaluru-based real estate investment trust (REIT) is set between ₹95-100 per unit. The IPO includes a fresh issue of units worth up to ₹2,390 crore and an offer for sale (OFS) of units valued up to ₹1,015 crore from the selling unitholder.
Funds raised will be utilized to acquire Luxor at Bagmane Capital Tech Park (covering one million sq ft) and to partially finance the acquisition of a 93% stake in Bagmane Rio, which owns the 1.1 million sq ft Bagmane Rio Business Park.
Bagmane Prime Office REIT’s portfolio consists of six premium Grade A+ business parks across 20.3 million square feet, situated in crucial micro-markets of Bengaluru, including the Outer Ring Road (ORR) and the Secondary Business District (SBD City).
Real Estate Investment Trusts (REITs) are investment entities that own or manage income-generating real estate, allowing investors to benefit from the income without needing to buy property directly.
Currently, there are five listed REITs in India, including the Sattva Group and Blackstone-backed Knowledge Realty Trust (KRT), K Raheja Corp-backed Mindspace Business Parks REIT, Brookfield India Real Estate Trust, Embassy Office Parks REIT, and Nexus Select Trust.
Among these five, only Nexus Select Trust is supported by rent-generating retail real estate (shopping malls), while the remainder are office REITs. The book-running lead managers for this issue are JM Financial, Kotak Mahindra Capital Company, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM, and HDFC Bank.
