The Knowledge Realty Trust REIT IPO is closing today, August 7, 2025, marking the end of the subscription period for investors. This Initial Public Offering (IPO) aimed to raise ₹4,800 crore through a fresh issue of units.
Subscription Status
On the second day of bidding, the IPO was subscribed 3.23 times. By the end of the second day, the issue had received bids for 67,38,88,350 units against the 20,84,20,800 units on offer. The portion for Other Investors was subscribed 5.59 times, while the Institutional Investors portion was subscribed 1.27 times. On day 1, the IPO was subscribed 0.62 times. The public issue was subscribed 0 times in the retail category, 0.35 times in QIB, and 0.93 times in the NII category. By the second day, the IPO was subscribed over 2.35 times. The QIB portion was subscribed 0.82 times, the NII portion 4.19 times, and the RII portion 0.00 times.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Knowledge Realty Trust REIT was ₹0 as of August 5 and August 6, 2025. This suggested that the estimated listing price could be ₹100, the same as the upper price band, with no premium.
IPO Details
The price band for the IPO was set at ₹95 to ₹100 per unit. The minimum lot size for an application was 150 units, requiring a minimum investment of ₹14,250 for retail investors. The allotment process is expected to be finalized on August 12, 2025, and the tentative listing date for both BSE and NSE is August 18, 2025.
Objectives of the IPO
Knowledge Realty Trust aimed to utilize the funds raised, amounting to ₹4,640 crores, for the partial or complete repayment or prepayment of specific financial debts of the Asset SPVs and Investment Entities. The remaining funds are intended for general corporate purposes.
About Knowledge Realty Trust
Knowledge Realty Trust is the largest office REIT in India, with a Gross Asset Value (GAV) of ₹619,989 million as of March 31, 2025. It also stands as the second-largest office REIT globally in terms of leasable area. Its portfolio comprises 30 Grade A office assets totaling 46.3 million sq ft as of March 31, 2025, including 37.1 million sq ft of completed area, 1.2 million sq ft under construction, and 8.0 million sq ft of future development area. The portfolio is diversified across six cities: Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City, Ahmedabad.
Anchor Investors
Ahead of the IPO, Knowledge Realty Trust raised ₹1,620 crore from anchor investors. The board allotted 16.20 crore shares at ₹100 each to 63 anchor investors. The trust had earlier raised ₹1,200 crore from strategic investors.
Financial Performance
In FY25, Knowledge Realty Trust reported revenue of ₹4,146.9 crore and a net profit of ₹222.5 crore.
Strengths
Knowledge Realty Trust has several strengths:
Recommendation
Geojit Financial Services assigned a "Subscribe" rating for the long term, considering Knowledge Realty Trust's leadership in the office REIT space, experienced sponsors, strong geographic diversification, high-quality tenant base, projected Net Operating Income (NOI) growth, potential for capital appreciation, attractive dividend yield (6% -7%), and a healthy balance sheet.
