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The initial public offering of Bagmane Prime Office REIT, backed by Blackstone, recorded a 71 per cent subscription on its opening day, reflecting early investor participation across categories. The INR 3,405 crore issue, which includes a mix of fresh issuance and an offer for sale, has attracted INR 1,150 crore from anchor investors. The REIT, headquartered in Bengaluru, holds a portfolio of Grade A+ office parks spanning over 20 million sq ft across key commercial corridors. Proceeds from the issue are earmarked for asset acquisitions, including properties within Bagmane Capital Tech Park and Bagmane Rio Business Park. The public issue remains open for subscription over the ongoing week.
Bagmane Prime Office REIT, backed by Blackstone, opened its initial public offering to investors in the past week, achieving a 71 per cent subscription on the first day of bidding, according to data available on the National Stock Exchange. The IPO, valued at INR 3,405 crore, saw bids for 10,55,39,250 units against an offer size of 14,79,21,000 units, indicating moderate early participation from both institutional and non-institutional investors. Advertisement
The category allocated for other investors was subscribed to the extent of 74 per cent, while institutional investors accounted for a 69 per cent subscription level on the opening day. Ahead of the public issue, the REIT had mobilised approximately INR 1,150 crore from anchor investors, providing initial support to the offering. The issue is scheduled to close later in the week.
The price band for the offering has been set between INR 95 and INR 100 per unit. Structurally, the IPO comprises a fresh issue of units aggregating up to INR 2,390 crore, alongside an offer for sale of units worth up to INR 1,015 crore by an existing unitholder.
Proceeds from the fresh issuance are proposed to be deployed towards strategic acquisitions within the sponsor’s portfolio. This includes the acquisition of ‘Luxor’ at Bagmane Capital Tech Park, which spans approximately one million sq ft, as well as partial funding for the purchase of a 93 per cent stake in Bagmane Rio, the entity owning Bagmane Rio Business Park with a leasable area of around 1.1 million sq ft.
The REIT’s existing portfolio comprises six Grade A+ office business parks, with a total leasable area of approximately 20.3 million sq ft. These assets are located across established commercial micro-markets in Bengaluru, including the Outer Ring Road and the Secondary Business District, both of which continue to see sustained demand from technology and corporate occupiers.
Real Estate Investment Trusts function as investment vehicles that own and operate income-generating real estate assets, allowing investors to participate in rental income streams without direct ownership of physical properties. The Indian REIT market currently includes five listed entities, largely concentrated in office assets, with Nexus Select Trust being the only platform focused on retail real estate.
The book-running lead managers for the issue include JM Financial, Kotak Mahindra Capital Company, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM and HDFC Bank, reflecting broad institutional involvement in the transaction structure.
Source - PTI
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