The floor price has been set at ₹108 per unit.
Knowledge Realty Trust is co-sponsored by Sattva Group and Blackstone.
The base offer covers up to 16.69% of the REIT’s unit capital and is valued at as much as ₹7,992 crore at the floor price.
The sellers also have the option to sell an additional 8.34% through a greenshoe, worth up to ₹3,996 crore.
If the greenshoe is fully exercised, the OFS would cover as much as 25.03% of Knowledge Realty Trust’s unit capital, taking the total transaction size to ₹11,988 crore.
What does the OFS mean?
An OFS allows existing holders to sell their units to investors through the stock-exchange platform. Unlike a fresh issue, the money raised through the sale goes to the selling unitholders rather than to the REIT itself.
In this case, entities linked to Blackstone are selling the units. The transaction therefore represents a reduction in their holding rather than fresh capital being raised by Knowledge Realty Trust.
The greenshoe gives the sellers the option to increase the number of units sold if there is sufficient demand.
Knowledge Realty expects leasing to accelerate
The OFS comes as Knowledge Realty Trust expects demand for premium office space to remain strong through FY27.
Chief Executive Officer Shirish Godbole said last month that leasing during the current financial year is likely to exceed the 3.5 million square feet recorded last year.
“We have done 1.4 million square feet already this year. So clearly, we are going to go past the 3.5 million number,” Godbole said. “Whether we go to 4 or 5 million square feet, I think that’s the question.”
The REIT hasn’t issued formal financial guidance but expects improving occupancy and a pipeline of potential acquisitions to support growth.
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