Knowledge Realty Trust files for ₹6,200 cr IPO, set to be India’s largest office REIT
In a significant development for the Indian real estate sector, Knowledge Realty Trust, a Blackstone and Sattva Developers-backed company, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth ₹6,200 crore. This massive IPO is set to be India’s largest office real estate investment trust (REIT) by net operating income and gross asset value.
As per the draft papers filed, the proceeds from the IPO will be primarily used for the repayment of debt. The REIT, which is focused on office spaces, has a portfolio of over 12 million square feet of rentable area across 15 cities in India.
Knowledge Realty Trust’s IPO is a significant event in the Indian real estate sector, which has been facing challenges in recent years. The company’s decision to go public is seen as a vote of confidence in the sector’s potential for growth and recovery.
The IPO is expected to be a major listing on the Indian stock markets, and it is likely to attract significant attention from institutional investors, high net worth individuals, and retail investors. The company has appointed SBI Capital Markets, Axis Capital, and Citigroup Global Markets India as its lead managers for the IPO.
The real estate sector in India has been facing challenges in recent years, including a slowdown in demand, high inventory levels, and regulatory issues. However, the sector is expected to recover in the coming years, driven by factors such as government initiatives to boost infrastructure development, urbanization, and increasing demand for office spaces.
REITs, in particular, have been gaining popularity in India in recent years, as they offer a unique investment opportunity for individuals to invest in the real estate sector. REITs allow individuals to invest in a diversified portfolio of properties, without having to directly own and manage the properties.
Knowledge Realty Trust’s IPO is expected to be a major milestone in the development of the Indian REIT market. The company’s decision to go public is seen as a significant step towards increasing transparency and accountability in the real estate sector.
The company’s portfolio includes a mix of office spaces in various cities across India, including Delhi NCR, Mumbai, Bengaluru, Chennai, and Hyderabad. The portfolio is diversified across various sectors, including IT, finance, and pharmaceuticals.
In terms of financial performance, Knowledge Realty Trust reported a net operating income of ₹2,400 crore and a gross asset value of ₹12,000 crore in the fiscal year 2020-21. The company’s revenue from operations has been growing steadily over the past few years, driven by the growth in its portfolio of properties.
The IPO is expected to be a major listing on the Indian stock markets, and it is likely to attract significant attention from institutional investors, high net worth individuals, and retail investors. The company’s decision to go public is seen as a significant step towards increasing transparency and accountability in the real estate sector.
In conclusion, Knowledge Realty Trust’s IPO is a significant event in the Indian real estate sector, and it is expected to set a new benchmark for future IPOs in the sector. The company’s decision to go public is seen as a vote of confidence in the sector’s potential for growth and recovery, and it is likely to attract significant attention from investors.
