New IPO Alert: Bagmane Group files draft paper to launch ₹4,000 crore REIT public issue

New IPO Alert: Bengaluru-based realty firm Bagmane Group-backed Bagmane Prime Office REIT has filed a draft paper with market regulator Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) to raise up to ₹4,000 crore.

In simple terms, a real estate investment trust, or REIT, is an investment vehicle that owns, operates or finances income-generating real estate, allowing investors to earn a share of the income produced without purchasing the properties.

Currently, there are five listed REITs in India, namely K Raheja Corp-backed Mindspace Business Parks REIT, Sattva Group and Blackstone-backed Knowledge Realty Trust (KRT), Embassy Office Parks REIT, Brookfield India Real Estate Trust and Nexus Select Trust.

According to the preliminary papers, the issue is a combination of a fresh issuance of units aggregating to ₹3,000 crore and an offer for sale component worth ₹1,000 crore.

The fresh issue proceeds will be utilised to acquire Luxor at Bagmane Capital Tech Park (spanning one million sq ft) for ₹1,775 crore. ₹1,025 crore to part-fund the acquisition of a 93% stake in Bagmane Rio, which owns the 1.1 million sq ft Bagmane Rio Business Park.

Bagmane Office REIT has a portfolio of six Grade A+ business parks with a total area of 20.3 million sq ft (16.1 million sq ft completed area), including 0.7 million sq ft of two under-construction hotels with 607 keys.

As of June 30, 2025, the portfolio has 97.9% committed occupancy. The REIT has a gross asset value of ₹38,790 crore.

Out of the five listed REITs, four are office REITs while Nexus Select Trust is backed by rent-yielding retail real estate (shopping malls).

Amid strong office demand post the COVID pandemic, real estate developers and institutional owners of office complexes are looking to monetise their commercial assets through REIT public issues.