Bagmane REIT is said to seek $3.9 billion valuation in India IPO

Blackstone-backed Bagmane Prime Office REIT is preparing to launch an initial public offering as soon as next month, seeking a valuation of about $3.9 billion, according to people familiar with the matter. The Bengaluru-based real estate developer has secured regulatory approval and begun investor roadshows, the people said, asking not to be identified because the information is private. The proposed offering will aim to raise Rs 4,000 crore, including as much as Rs 3,000 crore of newly issued units and a secondary sale of Rs 1,000 crore by Blackstone, according to the IPO prospectus filed in December. Discussions are ongoing and details such as the size and timing of the share sale could change, the people said. A spokesperson for Bagmane REIT didn’t respond to a request for comment. India’s market for first-time share sales is off to a subdued start in 2026, following two consecutive years of record fundraising. The nation’s stocks have been pressured by slowing earnings growth, global trade uncertainty and uneven foreign inflows. But real estate developers are increasingly turning to capital markets to raise funds, signaling their confidence that the shift of millions of people toward cities will ensure robust demand. India has seven registered REITs, of which Knowledge Realty Trust, Mindspace Business Parks REIT, Brookfield India Real Estate Trust, Embassy Office Parks REIT and Nexus Select Trust are listed. As of June 30, 2025, Bagmane’s portfolio comprised six Grade A+ business parks totaling 20.3 million square feet, including 19.6 million square feet of leasable area, the filing shows. The REIT reported a gross asset value of 387.9 billion rupees. According to the prospectus, net proceeds from the fresh issue will primarily be used for asset acquisitions and general corporate purposes. Kotak Mahindra Capital Co., Axis Bank Ltd., JM Financial Ltd., IIFL Capital Services Ltd., SBI Capital Markets Ltd., 360 ONE WAM Ltd. and HDFC Bank Ltd. are acting as book-running lead managers to the offering.