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2mo ago

Knowledge Realty Trust Opens ₹4,800 Crore REIT Issue at ₹95–100 per Unit

Opening on August 5 with a price band of ₹95–100 per unit, the issue reduces KRT’s debt to 19% of GAV, builds headroom for acquisitions, secures a 100% cash-flow distribution mandate.

In her column Let's Get Real, Manisha Natarajan writes about The Knowledge Realty Trust REIT, or KRT REIT, that opens its ₹6,200 crore initial public offering (IPO) this week, with ₹900 crore reserved for retail investors
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Overview

  • The ₹4,800 crore public issue opens on August 5 and closes on August 7 at a price band of ₹95–100 per unit with 75% allotted to institutions and ₹900 crore reserved for retail investors.
  • KRT secured a ₹1,400 crore pre-IPO placement from select investors before launching the public tranche.
  • The trust holds a 46.3 million square feet portfolio of 29 Grade A office assets across six cities, including 37.1 msf of completed space and 1.2 msf under construction.
  • About ₹6,000 crore of net proceeds will repay debt, reducing borrowings from ₹19,792 crore to roughly 19% of gross asset value and preserving capacity for future acquisitions.
  • Units are offered at a roughly 10% NAV discount and the REIT projects a 7.2% starting yield rising to 7.7% under a mandated 100% cash-flow distribution policy.