The ₹3,405 crore initial public offering (IPO) of Bagmane Prime Office REIT, backed by global investment firm Blackstone, opened for subscription on May 5 after attracting robust demand from anchor investors.
Ahead of the launch, the Bengaluru-based REIT raised ₹1,149 crore by allotting over 11.49 crore units at ₹100 each to a mix of domestic and global institutional investors, according to exchange filings. The anchor book saw participation from major institutions, including mutual funds, insurance firms, and pension funds.
The IPO comprises a fresh issue of units worth up to ₹2,390 crore and an offer for sale (OFS) of up to ₹1,015 crore by existing unitholders. The issue is scheduled to close on May 7, with allotment expected by May 12 and listing on the NSE and BSE likely on May 15.
A significant portion of the proceeds—approximately ₹1,775 crore—will be used to acquire the Luxor asset at Bagmane Capital Tech Park, while around ₹1,025 crore will partly fund the acquisition of a 93% stake in another commercial portfolio asset. The remaining funds will be allocated for general corporate purposes.
Bagmane Prime Office REIT manages a portfolio of six Grade A+ business parks across key Bengaluru micro-markets, including Outer Ring Road (ORR) and the Secondary Business District (SBD).
The portfolio spans over 20 million sq ft, with a committed occupancy of 98.8% as of December 2025, leaving limited headroom for growth through vacancy absorption.
Company projections indicate that leasing of vacant office space is expected to contribute just about 1% of total growth through FY30. Between FY23 and the first nine months of FY26, Bagmane leased 7.2 million sq ft, of which 91.7% came from existing tenants expanding their footprint, while new tenant additions accounted for less than 9%.
Despite limited vacancy-driven upside, the REIT’s growth outlook is supported by its presence in supply-constrained, high-demand micro-markets. Vacancy levels remain low at around 4.1% in Bengaluru’s Outer Ring Road (ORR) and 5.4% in Secondary Business District (SBD), positioning the portfolio to benefit from steady rental appreciation.
According to JLL, rents in ORR are expected to grow at 5.2% annually through CY2028, while SBD rents are projected to rise at 6.5% over the same period—significantly outpacing broader Indian commercial real estate trends.
The REIT’s tenant base includes large, leading global technology companies such as Google, Amazon, NVIDIA, and Samsung.
In addition to office assets, the portfolio includes under-construction hospitality projects and solar power assets, diversifying its income streams. For FY25, Bagmane Prime Office REIT reported total income of ₹2,390.88 crore and a profit after tax of ₹897.10 crore, with an asset base exceeding ₹7,200 crore.
The IPO is being managed by leading investment banks, including Kotak Mahindra Capital Company, Axis Capital, and SBI Capital Markets.
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