The initial public offering (IPO) of Blackstone-backed Bagmane Prime Office REIT received 71% subscription from investors on the first day on Tuesday. According to National Stock Exchange (NSE) data, bids were received for 10,55,39,250 units against the total of 14,79,21,000 units. According to PTI news, category wise, other investors got 74% subscription, while in the category of institutional investors, 69% subscription was recorded.
₹1,150 crore already raised
The company has already raised around ₹1,150 crore from anchor investors in this IPO. This public corporation of total ₹ 3,405 crore will close on May 7. The price band of this issue has been fixed at ₹95 to ₹100 per unit. The Bengaluru-based REIT owns and develops premium grade A+ office assets. The IPO comprises a fresh issue of ₹2,390 crore, while an offer for sale (OFS) of ₹1,015 crore has been brought by sustained unit holders.
Where will the company use the money
Bagmane Prime Office REIT will use the proceeds from this IPO to acquire Luxor, Bagmane Capital Tech Park (approximately 10 million sq. ft. area) and 93% stake in Bagmane Rio, which operates the 1.1 million sq. ft. Bagmane Rio Business Park. Bagmane Prime Office REIT’s portfolio is based on 6 premium business parks (total 20.3 million sq ft) in key micro-markets of Bengaluru such as Outer Ring Road (ORR) and Secondary Business District (SBD City).
Who are the book-running lead managers?
REITs (real estate investment trusts) are investments that allow investors to participate in the income from a property without purchasing it directly. There are currently 5 listed REITs in India, which include both office and retail property based trusts. Most of these are based on office space, while the only retail REIT is Nexus Select Trust. JM Financial, Kotak Mahindra Capital Company, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 One WAM and HDFC Bank have been appointed as book-running lead managers for the issue.
How much is GMP running?
There is a slight positive sentiment in the gray market regarding the IPO of Bagmane Prime Office REIT. According to market sources, its gray market premium (GMP) remains at the level of ₹4.25 per share. That is, its shares are seen trading at around ₹ 104.25 in the informal market. Looking at the current GMP, it is estimated that Bagman Prime Office REIT may be listed on NSE and BSE with a premium of around 4.25%. The listing of this IPO is proposed on May 15.
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