ewsba.se
The initial public offer of Blackstone-backed Bagmane Prime Office REIT, which opened for subscription on Tuesday, 5 May, concludes today (Thursday, 7 May). The Bagmane Prime Office REIT IPO price band has been fixed at ₹95-100 per unit.
The REIT based in Bengaluru, which develops and manages Grade A office properties, has successfully secured approximately ₹1,150 crore from initial investors prior to the public offering.
The REIT's asset portfolio consists of six high-quality Grade A business parks totalling around 20.3 million square feet, located in prominent office micro-markets in Bengaluru, including the Outer Ring Road (ORR) and the Secondary Business District (SBD City).
Real Estate Investment Trusts (REITs) serve as investment vehicles that own and manage income-generating real estate, enabling investors to earn rental income without directly owning the properties.
With this development, Bagmane Prime Office REIT becomes part of India's expanding listed REIT sector, which currently comprises: Knowledge Realty Trust, Mindspace Business Parks REIT, Brookfield India Real Estate Trust, Embassy Office Parks REIT, and Nexus Select Trust.
Of the listed REITs, Nexus Select Trust stands out as the sole retail-focused REIT supported by shopping mall properties, while the remaining REITs primarily manage office real estate portfolios.
Bagmane Prime Office REIT IPO GMP is +4. Considering the upper end of the Bagmane Prime Office REIT share price band and the current grey-market premium, the estimated listing price was ₹104 per share, 4% above the IPO price of ₹100.
Based on the analysis of the past 10 sessions of grey market activity, the current IPO GMP is on an upward trend, suggesting a strong listing is anticipated. The lowest GMP recorded is ₹0.00, whereas the peak GMP is ₹5, according to experts.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
The company has received bids for 51,49,20,900 units against 14,79,21,000 shares on offer at 14:45 IST, according to NSE data.
The initial public offering (IPO) includes a new issuance of units totalling up to ₹2,390 crore, along with an offer for sale (OFS) of units valued at up to ₹1,015 crore by the selling unit holder.
The funds raised will be utilised to purchase Luxor, located at Bagmane Capital Tech Park, which covers an area of one million square feet, as well as finance part of the acquisition of a 93 per cent stake in Bagmane Rio, the owner of the 1.1 million square feet Bagmane Rio Business Park.
The leading managers for this issue are JM Financial, Kotak Mahindra Capital Company, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE WAM, and HDFC Bank.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.