Bagmane REIT issue subscribed 24 times

The initial public offer of Blackstone-backed Bagmane Prime Office REIT saw record responses from investors, as the issue closed with a subscription of 23.71 times. The ₹3,405-crore IPO received bids for 350.77 crore units against 14.79 crore units on offer.

The category 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.

Ahead of IPO, Bagmane Prime Office REIT secured ₹1,150 crore from anchor investors.

The IPO came out with a price band of ₹95-100 a unit

IPO Structure

The IPO of Bengaluru-based real estate investment trust (REIT), which owns and develops Grade A+ office assets, consisted a fresh issue worth ₹2,390 crore and an offer for sale (OFS) of ₹1,015 crore by the selling unitholder (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.

Bagmane Prime Office REIT’s portfolio includes six premium Grade A+ business parks, spanning 20.3 million square feet, located in key micro-markets of Bengaluru, including the Outer Ring Road (ORR) and the Secondary Business District (SBD City).

The book running lead managers for the offer are JM Financial Ltd, Kotak Mahindra Capital Company Ltd, Axis Capital Ltd, IIFL Capital Services Ltd, SBI Capital Markets Ltd, 360 ONE WAM Ltd and HDFC Bank Ltd.