Bagmane Prime Office REIT IPO: Subscribed 83% so far on Day 2; check GMP and key details

Synopsis

Bagmane Prime Office REIT IPO is 83% subscribed on Day 2, driven by steady institutional and investor interest. The issue aims to raise Rs 3,405 crore, with a modest grey market premium. Backed by high occupancy assets and strong tenants, the REIT offers stable yield visibility.

The IPO of Bagmane Prime Office REIT has entered its second day of bidding, with the issue subscribed 83% so far against the 14.79 crore units on offer. The Bengaluru-focused office REIT aims to raise Rs 3,405 crore. Institutional investors have subscribed to 77% of their allotted 8.06 crore units, while other investors have subscribed to 91% of the 6.72 crore units on offer.

In the grey market, it is currently trading at a premium of 4.5%, or Rs 4.5 over the upper price band of Rs 100, indicating an estimated listing price of Rs 104.5.

The REIT has set a price band of Rs 95-100 per unit, and the issue will remain open for subscription until May 7. It is tentatively scheduled to list on the BSE and NSE on May 15.

Based on the upper price band, Bagmane Prime Office REIT is expected to deliver a payout yield of around 6.2% in FY27, which could increase to 7.5% by FY30.

The total issue size of Rs 3,405 crore includes a fresh issue of Rs 2,390 crore and an offer for sale of Rs 1,015 crore by existing unitholders.

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The IPO has already attracted strong institutional interest, including investment from the Jhunjhunwala Discretionary Trust.

Ahead of the public issue, the REIT raised Rs 1,150 crore from anchor investors by allotting 11.49 crore units at Rs 100 each. The anchor investors include major domestic institutions such as SBI Life Insurance Company, UTI Mutual Fund, Kotak Mahindra Mutual Fund, WhiteOak Capital Mutual Fund, Quant Mutual Fund, and Max Life Insurance Company.

Additionally, Bagmane had earlier raised Rs 1,360 crore through a pre-IPO placement via a primary issuance, even before the anchor round, highlighting robust institutional demand.

Sponsored by the Bengaluru-based Bagmane Group, the REIT provides exposure to high-quality commercial office assets in one of India’s strongest leasing markets. Its portfolio includes six Grade A+ business parks located across key business districts in Bengaluru, such as the Outer Ring Road and the Secondary Business District.

The REIT owns a total portfolio spanning 20.3 million square feet, with a leasable area of 19.6 million square feet. As of June 2025, it reported a committed occupancy rate of 97.9%, among the highest in India’s listed office REIT segment.

Its tenant base features global technology leaders like Google, Amazon, Nvidia, and Samsung Electronics, offering stable, long-term lease income from multinational corporations.

On the financial front, the REIT reported total income of Rs 1,960 crore and a profit after tax of Rs 829 crore for the nine-month period ending December 2025. The proceeds from the fresh issue will primarily be used for asset acquisitions within the Bagmane ecosystem, including the Luxor property at Bagmane Capital Tech Park, as well as for portfolio expansion.

Bagmane Prime Office REIT will become India’s sixth listed REIT, joining names such as Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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