Blackstone and Sattva Developers-sponsored Knowledge Realty Trust's Rs 4,800 cr IPO to open on August 5, offer size reduced

Knowledge Realty Trust IPO

Knowledge Realty Trust, the second largest office REIT in Asia sponsored by Blackstone and Sattva Developers, is set to launch its Rs 4,800-crore maiden public issue for subscription on August 5. The offer will close on August 7.

The total offer size has been reduced from Rs 6,200 crore planned earlier as per the draft offer document filed in March this year.

Up to 75 percent of the offer size has been reserved for institutional investors, and the remainder 25 percent for non-institutional investors.

The IPO units allotment will get finalised by August 12, and Knowledge Realty Trust units will make market debut on August 18.

After listing, Knowledge Realty Trust will be the largest office REIT in India based on gross asset value (GAV) of Rs 61,999 crore and will be the fifth REIT available for trading on the BSE and National Stock Exchange of India, after Embassy Office Parks REIT, Mindspace Business Parks REIT, Brookfield India Real Estate Trust REIT, and Nexus Select Trust.

The REIT with a portfolio of 29 Grade A office assets of 46.3 million square feet spread across 6 major cities (including Mumbai, Bengaluru, Hyderabad, and Chennai) intends to utilise Rs 4,640 crore of the IPO proceeds for repayment of debt the asset SPVs and the investment entities, and the remainder for general purposes.

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The total outstanding borrowings availed by the asset SPVs (special purpose vehicles) and investment entities was Rs 20,827.7 crore till July 2, as per the draft document filed on July 29.

Knowledge Realty Trust, which is managed by the Knowledge Realty Office Management Services, is owned by several strategic investors like Life Insurance Corporation, SBI Life Insurance, UTI AMC, HDFC Life Insurance, Kotak Mahindra Life Insurance, Bengani Leasing, Subham Capital, and Supriyata Capital.

On the financial front, the REIT has recorded profit at Rs 222.5 crore for the fiscal 2025, declining 34.5 percent compared to the previous year due to exceptional loss of Rs 350.2 crore. Revenue in the year ended March 2025 increased by 15.8 percent to Rs 3,930.1 crore compared to previous fiscal.

Knowledge Realty Trust would be the fourth REIT to list by the Blackstone, an affiliate of Blackstone Inc (the world’s largest alternative asset manager), which has previously listed 3 real estate investment trusts in India (Embassy Office Parks REIT, Mindspace Business Parks REIT and Nexus Select Trust).

The merchant bankers handling the Knowledge Realty Trust IPO are Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, ICICI Securities, IIFL Capital Services, JM Financial, Morgan Stanley India Company, and SBI Capital Markets.