Bagmane Prime Office REIT IPO Receives 1.48 Times Subscription on Second Day

Bagmane Prime Office REIT Sees Strong Demand in Second Day of IPO Bidding

The initial public offering (IPO) of Blackstone-backed Bagmane Prime Office REIT received robust demand on the second day of bidding on Wednesday, with investors showing significant interest in the company's units. According to data from the National Stock Exchange (NSE), the IPO received bids for 21.84 crore units, which is 1.48 times the 14.79 crore units on offer.

The subscription figures indicate that the category for other investors fetched 2.17 times subscription, while the portion for institutional investors got subscribed 90 percent. Notably, Bagmane Prime Office REIT has already secured about Rs 1,150 crore from anchor investors.

The public issue of the Bengaluru-based real estate investment trust (REIT) will conclude on May 7, with the company aiming to raise Rs 3,405 crore. The price band has been fixed at Rs 95-100 per unit, with the IPO consisting of a fresh issue of units aggregating up to Rs 2,390 crore and an offer for sale (OFS) of units worth up to Rs 1,015 crore by the selling unitholder.

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Proceeds from the IPO will be used to acquire key assets, including Luxor at Bagmane Capital Tech Park (spanning one million sq ft) and part-fund the acquisition of a 93 percent stake in Bagmane Rio, which owns the 1.1 million sq ft Bagmane Rio Business Park.

Bagmane Prime Office REIT's portfolio includes six premium Grade A+ business parks spanning 20.3 million square feet, located in key micro-markets of Bengaluru, including the Outer Ring Road (ORR) and the Secondary Business District (SBD City).

Real Estate Investment Trusts (REITs) are investment vehicles that enable investors to earn a share of the income produced by income-generating real estate without directly purchasing the properties. At present, there are five listed REITs in India: 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.

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Note: The table highlights the focus of investment for the five listed REITs in India.