Knowledge Realty Trust, India’s largest office real estate investment trust (REIT) by gross asset value and Asia’s second-largest office REIT by leasable area, has locked in a record INR 2,820 crore from institutional investors ahead of its INR 4,800 crore IPO opening today.
Knowledge Realty Trust REIT pre-IPO commitment — comprising INR 1,620 crore from anchor investors and INR 1,200 crore from strategic allocations — positions the IPO with 70% of the issue already subscribed before retail bidding.
The unprecedented scale and breadth of participation signal a turning point in India’s REIT capital markets, with both domestic and global institutional heavyweights taking long-term positions.
1. Anatomy of the Knowledge Realty Trust REIT Pre-IPO Commitment
Knowledge Realty Trust pre-IPO structure has been executed in three distinct tranches:
| Tranche | Amount Raised (INR Cr) | Purpose | Key Participants |
|---|---|---|---|
| Pre-IPO Round | 1,400 | Early capital raise | R.K. Damani, Karan Bhagat Trust, 360 ONE Office |
| Strategic Investor Allocation | 1,200 | Long-term cornerstone investors | LIC, SBI Life, HDFC Life, Kotak Life, UTI MF, 360 ONE |
| Anchor Investor Allocation | 1,620 | Institutional market signalling | LIC, Tata AIG, Jhunjhunwala Trusts, NPS, Amundi, Morgan Stanley, Barclays, Citigroup |
2. Knowledge Realty Trust REIT Anchor Book: A Cross-Section of Global & Domestic Firepower
Knowledge Realty Trust REIT anchor book saw allocations to more than 50 institutions — an unusually broad spread in the Indian REIT market.
16.2 crore units were allotted at INR 100 each.
Top Five Allocations:
- 360 ONE Real Assets Advantage Fund – INR 180 crore (11.11% of anchor book)
- Tata AIG General Insurance – INR 150 crore (9.26%)
- 360 ONE Income Opportunities Fund – Series 4 – INR 120 crore (7.41%)
- Life Insurance Corporation of India (LIC) – INR 100 crore (6.17%)
- NPS Trust – SBI Pension Fund (State Govt) – INR 55 crore (3.40%)
Other Notables:
- Jhunjhunwala Family Trusts – ~INR 65 crore each
- Amundi Funds, Florida Retirement System, Tocu Europe, Morgan Stanley, Barclays Multi-Manager Fund, Société Générale, BofA Securities Europe, Citigroup Global Markets
3. Mutual Funds’ Significant Footprint
Domestic mutual funds claimed 16.05% of the Knowledge Realty Trust REIT anchor allocation — 2.6 crore units worth INR 260 crore — with heavyweights like Franklin Templeton, Tata MF, WhiteOak, Quant MF, and Nippon India among them.
Largest MF Allocations:
- Franklin India Dividend Yield Fund – INR 40 crore
- Quant Multi Asset Allocation Fund – INR 25 crore
- WhiteOak Capital Multi Asset Allocation Fund – INR 19 crore
This level of MF participation suggests strong domestic institutional conviction, often seen as a proxy for long-term stability.
4. Strategic Investors: Building a Cornerstone
The strategic allocation of INR 1,200 crore was designed to bring in cornerstone investors with low churn probability.
Participants included:
- LIC (first-ever REIT IPO participation)
- SBI Life Insurance
- HDFC Life Insurance
- Kotak Mahindra Life Insurance
- UTI Mutual Fund
- 360 ONE
This tranche ensures that a substantial portion of units are held by long-term, yield-focused investors.
5. Why This Matters for India’s REIT Market
Knowledge Realty Trust IPO is not just another REIT listing. It marks:
- The largest pre-IPO institutional commitment in Indian REIT history
- First-time REIT participation by LIC
- Broadest anchor investor base seen to date, spanning insurance, mutual funds, pensions, and global asset managers
- A new post-SEBI REIT Master Circular environment, making it a bellwether test case
6. Knowledge Realty Trust REIT IPO Details & Market Positioning
- Issue Size: INR 4,800 crore (fresh issue)
- Price Band: INR 95–100 per unit
- Lot Size: 150 units (INR 15,000 minimum investment)
- Subscription Dates: 5–7 August 2025
- Listing: BSE & NSE, expected 18 August 2025
- Allocation: Up to 75% institutional, minimum 25% non-institutional
Use of Proceeds:
- INR 4,640 crore – Repayment/prepayment of debt of asset SPVs and investment entities
- Balance – General corporate purposes
7. Portfolio & Scale
As of 31 March 2025:
- Portfolio Value: INR 61,998.9 crore
- Global Ranking: 2nd-largest office REIT by leasable area
- India Ranking: Largest office REIT by gross asset value
- Tenant Profile: Predominantly Grade-A corporate occupiers with long leases and stable cash flows
8. Key Takeaway
From a market analyst’s standpoint, the INR 2,820 crore institutional commitment before opening sends a powerful signal.
Such commitments often compress post-listing volatility, improve secondary market liquidity, and strengthen price discovery.
Given the quality of the tenant base, size of the asset pool, and the breadth of investor participation, this IPO is well-placed to see oversubscription across all categories.
Key Dates to Watch
- 5–7 August: IPO subscription window
- 12 August: Allotment finalisation
- 18 August: Listing on BSE & NSE
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.