Bagmane Prime Office REIT Sees 71% Subscription on First Day of IPO

Bagmane Prime Office REIT Sees Strong Subscription in First Day of IPO Bidding

The initial public offering (IPO) of Blackstone-backed Bagmane Prime Office REIT received a strong subscription on the first day of bidding on Tuesday, with a 71 percent subscription against the total number of units offered.

As per data from the National Stock Exchange (NSE), the IPO received bids for 10,55,39,250 units against 14,79,21,000 units on offer. The portion of the issue reserved for other investors fetched a 74 percent subscription, while the portion for institutional investors got subscribed 69 percent.

Bagmane Prime Office REIT has secured about Rs 1,150 crore from anchor investors as part of its public issue. The Rs 3,405-crore public issue will conclude on May 7, with a price band fixed at Rs 95-100 per unit for the public issue of Bengaluru-based real estate investment trust (REIT).

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The IPO has 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. The proceeds from the IPO will be used to acquire Luxor at Bagmane Capital Tech Park (spanning one million sq ft) as well as part-fund the acquisition of a 93 percent stake in Bagmane Rio, which owns the 1.1 million sq ft Bagmane Rio Business Park.

Key Highlights of Bagmane Prime Office REIT's Portfolio

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).

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

The book-running lead managers to the issue are JM Financial, Kotak Mahindra Capital Company, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM and HDFC Bank.