Knowledge Realty Trust: India's largest, most subscribed REIT IPO

The initial public offering (IPO) of Knowledge Realty Trust REIT, co-sponsored by the Sattva Group and global investment firm Blackstone, created history on Thursday by becoming India's largest and most subscribed REIT IPO to date. The offering garnered bids worth approximately 260.09 crore equity shares against 20.84 crore on offer -- a subscription of 12.48 times overall.

This issue, which was priced in the range of Rs 95 to Rs 100 per unit, concluded today, drawing overwhelming interest across investor categories. Institutional investors subscribed 9.07 times their quota, while the portion reserved for other investors, including high-net-worth individuals and retail participants, was subscribed 16.57 times, according to BSE data.

With a gross asset value of Rs 62,000 crore, Knowledge Realty Trust REIT is now the largest REIT in India and the second largest in Asia. The public issue comprised a fresh issuance of units worth up to Rs 4,800 crore. Of this, Rs 4,640 crore will be allocated for partial or full repayment or prepayment of financial liabilities of the Asset Special Purpose Vehicles (SPVs) and Investment Entities, with the remaining proceeds earmarked for general corporate purposes.

Commenting on the IPO's stellar response, Quaiser Parvez, Chief Operating Officer of Knowledge Realty Trust REIT, said, "The total number of applications we've received for Knowledge REIT is more than the sum total of all past Indian REITs put together. This isn't just a milestone -- it's a resounding vote of confidence in REITs (Real estate investment trusts) as a product of stable income and growth avenue. More importantly, it reflects the growing conviction in the structural strength of India's premium office space -- a long-term, secular growth story that is firmly poised to benefit tremendously from India's extraordinary growth story."

The REIT's extensive portfolio includes 29 commercial assets with a total leasable area of 46 million square feet across major Indian cities such as Mumbai, Hyderabad, and Bengaluru. Landmark properties under its fold include 'One BKC' and 'One World Center' in Mumbai, 'Knowledge City' and 'Knowledge Park' in Hyderabad and 'Cessna Business Park and 'Sattva Softzone' in Bengaluru.

For the financial year ended March 2025, Knowledge Realty Trust REIT reported a net profit of Rs 222.5 crore, down 34.5 per cent from the previous year due to a reported loss of Rs 350.2 crore. However, revenue rose by 15.8 per cent to Rs 3,930.1 crore.