Jhunjhunwala-Backed Bagmane Prime Office REIT Debuts with 3.5% Premium Over IPO Price

Bagmane Prime Office REIT made its debut on the National Stock Exchange (NSE) on Thursday, listing at Rs 103.50 per unit, which reflects a 3.5% premium over its IPO price of Rs 100. The initial public offering raised Rs 3,405 crore and was notably oversubscribed nearly 25 times, signifying robust market interest. This IPO not only attracted significant investor applications but also marked a milestone as the highest number of applications ever received for a REIT IPO in India, culminating in a market capitalization of Rs 35,190 crore on listing day.

Prior to the listing, Bagmane’s unlisted units experienced a grey market premium of approximately 4% over the IPO price, indicating favorable market sentiment among investors. The institutional participation was particularly strong, with the Qualified Institutional Buyers (QIB) category, excluding anchor investors, oversubscribed by 26.58 times, while the non-institutional segment saw a subscription of 22.82 times. This overwhelming response underscores investor confidence in the company’s proposition and its backing from reputable entities such as Blackstone and various large domestic institutions.

For Indian investors, the successful listing of Bagmane Prime Office REIT not only adds a sixth REIT to the publicly listed spectrum but also reflects a growing acceptance of REITs in the Indian market. The portfolio, comprising six Grade A+ business parks with a committed occupancy rate of 97.9%, escalates the appeal of this investment vehicle, especially given its association with major global tenants like Google and Amazon. This trend indicates that Indian investors are increasingly diversifying their portfolios into alternative investments, potentially enhancing overall market liquidity and stability in the real estate sector.

Source: The Economic Times

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