In a landmark moment for India’s real estate investment space, the Knowledge Realty Trust REIT IPO closed with overwhelming investor interest, being subscribed over 13 times by the end of its final bidding day. With this, the issue becomes not only the largest REIT IPO in the country’s market history but also the most subscribed one ever.
The public issue received a staggering 259 crore bids against the 20.84 crore equity shares on offer, reflecting the strong demand across all categories. This robust participation came within the price band of 95 to 100 rupees per unit, signaling both institutional confidence and retail enthusiasm.
At the higher price point of 100 rupees, the IPO saw an overall subscription of 13.11 times. Institutional investors, such as mutual funds and pension funds, subscribed 9.55 times their allocated quota. The retail and non-institutional segment outperformed expectations by subscribing 17.38 times, suggesting that individual investors are increasingly viewing REITs as a stable and attractive asset class. At the lower end of the price band, the IPO was still massively oversubscribed, with 12.45 times total demand.
This phenomenal investor response signals a growing appetite for REITs among Indian investors who are seeking long term, steady income sources through real estate exposure. It also reflects confidence in Knowledge Realty Trust, which has developed a strong footprint in commercial real estate across major urban centers.
The IPO size stands at 4800 crore rupees through a fresh issuance of units. This issue was conducted using the book building process under the guidelines of the Securities and Exchange Board of India. Not more than 75 percent of the issue was allocated to institutional investors, while at least 25 percent was reserved for non-institutional buyers.
According to the company, the funds raised will be primarily used to repay or prepay loans of the underlying asset SPVs and investment entities. The remaining proceeds will be utilized for general corporate purposes. The efficient use of capital and focus on reducing debt load is expected to improve operational leverage and generate consistent returns for unit holders over the long term.
The success of the Knowledge Realty Trust IPO comes at a time when investor interest in alternative investment vehicles such as REITs is rising steadily. With more real estate players considering public listings and the regulator introducing new frameworks for smaller REITs, this signals the start of a more democratized and retail-friendly real estate investment environment in India.
Industry experts believe that the overwhelming demand for this IPO is also reflective of a shift in investor behavior, where newer generations are more open to structured investment products offering diversified and tax-efficient income sources. With rising interest in real estate as an asset class, REITs are expected to be a cornerstone in the portfolios of long term Indian investors.
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