Jhunjhunwala-Backed Bagmane REIT IPO Launches Today: Discover GMP, Subscription Details, Price Band, and More!

The upcoming IPO of Bagmane Prime Office REIT, set to open for subscription on Tuesday, aims to raise Rs 3,405 crore, positioning itself as one of the most significant primary market offerings of the year. The Bengaluru-focused office REIT has successfully attracted strong institutional interest, notably from the Jhunjhunwala Discretionary Trust. However, ahead of the issue opening, grey market signals indicated a muted response, reflected in the units commanding a zero premium, suggesting that the market’s expectations for immediate listing gains are limited despite substantial anchor participation. The REIT has established a price band of Rs 95 to Rs 100 per unit, with subscription closing on May 7 and a tentative listing set for May 15 on the BSE and NSE.

Bagmane Prime Office REIT aims to deliver an attractive payout yield of approximately 6.2% in FY27, projected to escalate to 7.5% by FY30, based on the upper price band. The IPO comprises a fresh issue of Rs 2,390 crore and an offer for sale of Rs 1,015 crore by existing unitholders, indicating robust institutional appetite leading to a pre-IPO placement of Rs 1,360 crore. Following the pre-IPO and anchor rounds, the REIT’s strong backing from major domestic institutions, such as SBI Life Insurance Company and UTI Mutual Fund, underscores the confidence in the asset’s long-term potential within one of India’s most competitive office leasing markets.

With a portfolio encompassing 20.3 million square feet, including six Grade A+ business parks, Bagmane Prime Office REIT is poised to become India’s sixth listed REIT, joining influential names such as Embassy Office Parks REIT and Brookfield India Real Estate Trust. The trust’s impressive committed occupancy rate of 97.9% as of June 2025, along with tenants like Google and Amazon, emphasizes its capability to provide stable, long-duration lease income. The fresh IPO proceeds are earmarked primarily for asset acquisitions and portfolio expansion, reinforcing the trust’s commitment to catalyzing growth while enhancing shareholder value through strategic investments within its established ecosystem.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)