Bagmane Prime Office REIT ends 3.7% higher at ₹103.66

Blackstone-backed Bagmane Prime Office REIT ended Day 1 of listing on strong note, by gaining nearly 3.66 per cent at ₹103.66 against the issue price of ₹100. The units were listed at ₹103.40 on the BSE and climbed to a high of ₹104.48.

Earlier, the ₹3,405-crore initial public offering of Bagmane REIT saw a record response from investors, as the issue closed with a subscription of 23.71 times. The portion for other investors fetched 21.87 times subscription, while the portion for institutional investors got subscribed 25.25 times. According to sources, the company received over 2 lakh applications, the highest ever for a REIT issue.

Anchor funding

Ahead of the IPO, the REIT raised ₹1,150 crore from anchor investors. The IPO of the Bengaluru-based real estate investment trust consisted a fresh issue worth ₹2,390 crore and an offer for sale of ₹1,015 crore by the selling unit holder (Blackstone).

Proceeds 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 per cent stake in Bagmane Rio, which owns the 1.1 million sq ft Bagmane Rio Business Park.

The REIT’s portfolio comprises six premium Grade A+ business parks with 20.3 million sq ft total area, and it is located in the world’s best performing micro-markets (by net absorption since from CY21 to CY25). The portfolio consists of 19.6 million sq ft of leasable area, including 16.6 million sq ft completed area which is almost 99 per cent occupied.