Knowledge Realty Trust REIT IPO fully subscribed on day 1

Knowledge Realty Trust REIT IPO

Knowledge Realty Trust, the India's largest office space REIT, has garnered good interest for its IPO from investors on the first day of bidding, i.e. August 5. The Rs 4,800-crore public issue was fully subscribed at 1.2 times with investors bidding 25.04 crore units against the offer size of 20.84 crore units.

Non-institutional investors took the lead, buying 1.75 times their allotted quota, and the portion set aside for institutional investors was booked 75 percent.

Blackstone and Sattva Developers-sponsored Knowledge Realty Trust is raising Rs 4,800 crore via initial public offering (IPO), with a price band of Rs 95-100 per share.

Of which, it has already raised Rs 1,620 crore via anchor book launched on August 4, a day before the IPO opening.

Prominent domestic and global investors like Morgan Stanley, Barclays, Societe Generale, Amundi Funds, Citigroup, Life Insurance Corporation, Jhunjhunwala Discretionary Trust operated by Rakesh Jhunjhunwala's children, Tata Mutual Fund, WhiteOak Capital, HDFC Life Insurance, Quant Mutual Fund, and Kotak Mahindra Life Insurance invested in the Asia's second largest office REIT in terms of leasable area.

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Further, in addition to this, the strategic investor allocation of Rs 1,200 crore worth of units was finalised by the REIT on July 29, and the subscription agreements for this book was signed on July 24. LIC, SBI Life Insurance, UTI Mutual Fund, HDFC Life Insurance, Kotak Mahindra Life Insurance, 360 ONE Prime, and SBI General Insurance were among 13 strategic investors participated in the book.

As a result, the actual issue size of Rs 1,980 crore is now open for public subscription during August 5-7.

Knowledge Realty Trust plans to use Rs 4,640 crore of the IPO proceeds for repaying debt availed by the asset SPVs and the investment entities. As of July 2, the total outstanding borrowings were Rs 20,827.7 crore.

The REIT holds a portfolio of 29 Grade A office assets of 46.3 million square feet (msf) spread across 6 major cities (including Mumbai, Bengaluru, Hyderabad, and Chennai), with 37.1 msf of completed area, 1.2 msf of under construction area and 8.0 msf of future development area.