It is the final day of bidding for Knowledge Realty Trust REIT, and yet, Dalal Street seems quieter than expected. A Rs 4,800 crore issue backed by Blackstone and Sattva Developers, it aims to become India’s largest listed REIT in terms of asset value and income. But even as the bidding window shuts today, one question lingers is that has the REIT captured investor imagination, or is the market simply not in the mood?
Knowledge Realty Trust REIT IPO: A last-minute jump in GMP but is it enough?
The grey market premium (GMP) for Knowledge Realty Trust saw a mild jump on the final day of bidding. As of now, the GMP stands at around Rs 1.5 per unit. This suggests a listing price of Rs 101.5 versus the upper band of Rs 100.
While this is the highest GMP the issue has seen so far, it is still a modest premium, barely 1.5%.
Knowledge Realty Trust REIT IPO: Structure and key details
The IPO opened for subscription on August 5 and closes today, August 7. The issue is entirely a fresh offering a 48 crore units, priced between Rs 95 to Rs 100 each. The minimum investment size is set at Rs 15,000.
Once listed, the REIT will debut on the NSE and BSE, with the listing expected around August 18.
Share allotment is likely to be finalised by August 12. Kotak Mahindra Capital is the lead manager, and KFin Technologies is handling the registrar responsibilities.
Knowledge Realty Trust REIT IPO: Anchor investors
Institutional backing for Knowledge Realty Trust has been strong. Ahead of the issue, the REIT raised Rs 1,620 crore from anchor investors and another Rs 1,200 crore via allocation.
Names like LIC, Axis Mutual Fund, Nippon MF, SBI Pension Fund, and HDFC Life were part of the list.
Knowledge Realty Trust REIT IPO: Where will the money go?
Out of the total proceeds, Rs 4,640 crore will be used to repay or prepay debt of the underlying asset SPVs and investment entities.
The rest will go toward general corporate purposes.
Knowledge Realty Trust REIT IPO: India’s biggest REIT?
Knowledge Realty Trust is set to become the largest REIT in India in terms of Gross Asset Value (GAV) and Net Operating Income (NOI). This would make it a key player in the Indian commercial real estate space, especially at a time when Grade-A office space continues to find takers.