Bagmane Prime Listing: REIT lists at 3.5% premium over issue price on debut

Bagmane Prime Office REIT made a modest debut on the stock exchanges on Thursday, listing at ₹103.50 per unit against its issue price of ₹100, translating into a premium of 3.5%.

The ₹3,405 crore REIT IPO had opened for subscription between May 5 and May 7 and emerged as one of the largest real estate investment trust listings in India this year. The public issue comprised a fresh issue of ₹2,390 crore and an offer for sale worth ₹1,015 crore.

The Bengaluru-focused office REIT had attracted strong institutional interest during the IPO process, with reports suggesting it received over two lakh applications — the highest ever for a REIT IPO in India.

Bagmane Prime Office REIT owns and manages a portfolio of premium Grade A+ office assets largely concentrated in Bengaluru’s major commercial hubs. Its portfolio includes six office parks with around 20.3 million square feet of total area and nearly 19.6 million square feet of leasable area. The REIT also has under-construction hotels and solar power assets as part of its broader infrastructure portfolio.

The REIT is backed by the Bagmane Group, one of Bengaluru’s largest commercial office developers, along with global investment giant Blackstone. The portfolio houses several multinational tenants, including global technology and semiconductor companies, benefiting from continued demand for premium office spaces and GCC expansion in India.

According to the offer documents, proceeds from the fresh issue will primarily be used to partly fund acquisitions within the Bagmane portfolio, including Luxor at Bagmane Capital Tech Park and a stake acquisition in another business park entity.

The listing marks another milestone for India’s growing REIT market, which has been witnessing increasing investor participation amid rising interest in commercial real estate-backed income-generating assets.