NEW DELHI: Knowledge Realty Trust’s initial share sale, sponsored by the Sattva Group and Blackstone, saw full subscription on its opening day, achieving a subscription level of 1.20 times.
The ₹4,800-crore Real Estate Investment Trust (REIT) initial public offering (IPO) garnered bids for 25,049,130 units compared to the 20,842,080 units available, marking a subscription rate of 1.20 times, according to NSE data.
Institutional investors accounted for 75% of the subscriptions, while the remaining categories, including corporate and individual investors (NRI and HUF), were subscribed to 1.75 times, as per NSE data.
Knowledge Realty Trust announced on Monday that it had secured ₹1,620 crore from anchor investors, which include major players like Amundi, Wells Capital, and Jhunjhunwala Trust. The company has also received a strategic allocation of ₹1,200 crore from institutional investors.
The IPO is set to close on August 7, with a price band ranging from ₹95 to ₹100 per unit.
This IPO consists entirely of new unit issuances by Knowledge Realty Trust.
In March, KRT submitted its draft red herring prospectus (DRHP) to SEBI to initiate the IPO and facilitate the listing of the REIT on stock exchanges as part of its strategy to monetize 30 prime office assets across major cities.
Initially, the company aimed to raise ₹6,200 crore through the public issue, but that target was adjusted to ₹4,800 crore following a ₹1,400 crore raise in June.
KRT is poised to become India’s largest REIT in terms of gross asset value, estimated at around ₹62,000 crore, with a net operating income of ₹3,432 crore reported in the last fiscal year.
KRT manages over 46 million sq ft of office space across 29 properties in six major cities, including Mumbai, Bengaluru, and Hyderabad.
Notable assets include One BKC and One World Center in Mumbai, Knowledge City and Knowledge Park in Hyderabad, and Cessna Business Park and Sattva Softzone in Bengaluru.
Blackstone and Sattva will retain approximately 80% ownership of the REIT.
Currently, India has four listed REITs: Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, and Nexus Select Trust.
Aside from Nexus, the other three REITs are supported by rental-yielding office assets, while Nexus focuses on retail real estate.
Bengaluru-based Sattva Developers has completed construction of 74 million sq ft across seven Indian cities in various sectors, including commercial, residential, co-living, co-working, hospitality, and data centers.
An additional 75 million sq ft is currently in the planning and implementation stages.
Blackstone, a leading global investment firm, has significant interests in the Indian real estate sector, and the two sponsors have opted for a brand-neutral approach for expanding the KRT portfolio through third-party acquisitions.
The existing four REITs boast a combined portfolio of over 126 million sq ft of Grade A office and retail spaces nationwide.
Since their inception, these REITs have collectively distributed over ₹21,000 crore to unitholders.
