Knowledge Realty Trust IPO 2025: A Complete Guide to India’s Biggest Office REIT IPO

The Knowledge Realty Trust IPO is creating a buzz among Indian investors as it prepares to launch one of the largest office REIT offerings in 2025. Backed by real estate giants Blackstone and Sattva Group, this IPO offers a unique opportunity for investors to participate in India’s growing commercial real estate market. Here is the detailed guide to everything you need to know about the Knowledge Realty Trust IPO, including its company overview, IPO specifics, financials, peer comparison, strengths, risks, subscription details, allotment, listing, FAQs, and how to apply.

Company Overview

Knowledge Realty Trust, founded by Blackstone and Sattva Group, is India’s largest office Real Estate Investment Trust (REIT) by Gross Asset Value (GAV) and Net Operating Income (NOI). The trust focuses on premium grade office spaces located across top-performing cities in India including Bangalore, Mumbai, Delhi NCR, Chennai, Pune, and others. The business model involves owning and managing Grade A office commercial real estate assets leased primarily to reputed corporate tenants, generating steady rental incomes.

As of FY25, Knowledge Realty Trust reported a Net Operating Income (NOI) of over Rs 3,432 crore, marking a 19% growth. The trust’s vast asset base and operational scale make it a significant player in India’s commercial property sector.

IPO Details

• Type: Mainline IPO (REIT Offering)
• Issue Size: Rs 4,800 crore (Fresh Issue)
• Price Band: Rs 95 to Rs 100 per unit
• Lot Size: 150 units (Minimum Investment Rs 15,000 approx.)
• Opening Date: 5 August 2025
• Closing Date: 7 August 2025
• Listing Date: 12 August 2025
• Grey Market Premium (GMP): Around Rs 5 to Rs 7 per unit (subject to market fluctuations)

IPO Objectives

• To raise capital for acquiring additional premium office real estate assets across India.
• To reduce the overall leverage and optimize capital structure.
• To fund planned expansions and capital improvements on existing properties.

Pre-IPO Placements

Knowledge Realty Trust is sponsored by two heavyweight real estate investors – Blackstone and Sattva Group. The pre-IPO placements and initial stakes are primarily held by these sponsors and select institutional investors. There are no major pre-IPO equity sales announced recently, affirming strong sponsor confidence.

Financial Highlights

• Net Operating Income (FY25): Rs 3,432 crore (19% YoY growth)
• Revenue Growth: Steady growth driven by rental income from commercial real estate
• Profit After Tax (PAT): Not applicable as a REIT; distribution is based on distributable cash flows
• Return on Equity (ROE): Data specifically not disclosed; REITs focus on yield and asset value appreciation

Peer Comparison

Knowledge Realty Trust competes with other listed Indian REITs such as Embassy Office Parks and Mindspace Business Parks. It holds the distinction of having the lowest loan-to-value ratio of around 19%—significantly lower than many peers—indicating a strong balance sheet position. The pricing band and expected yield make it a competitive choice among India’s REIT options.

Strengths of Knowledge Realty Trust

• Strategic portfolio of Grade A office spaces in six top Indian cities.
• Strong backing by global investors Blackstone and Sattva Group.
• Largest office REIT in India by Gross Asset Value and Net Operating Income.
• Stable rental income stream with high-quality tenants.
• Low loan-to-value ratio providing financial stability.

Risks to Consider

• Market risks related to commercial office space demand fluctuations.
• Potential interest rate hikes affecting REIT yields.
• Dependence on continuous tenant occupancy and rental collections.
• Regulatory changes affecting REIT industry norms.

Expert Verdict

The Knowledge Realty Trust IPO presents a rare chance to invest in a well-established, large-scale office REIT with premium real estate assets and stable cash flows. Suitable for conservative investors seeking asset-backed investments with steady distributions, the IPO’s price band and lot size make it accessible. However, investors should consider sector risks like market demand and macroeconomic conditions. Overall, it is a positive opportunity to diversify into real estate within a regulated financial instrument.

Subscription Status

As the IPO opens from 5 August 2025, early indications suggest strong institutional interest with subscription multiples expected to surge. Retail participation is also anticipated to be robust given the trust’s fundamentals and sponsor backing.

Allotment and Listing Timeline

• IPO Opens: 5 August 2025
• IPO Closes: 7 August 2025
• Allotment Announcement: Around 10 August 2025
• Listing Date: 12 August 2025

FAQs

• What is the minimum investment for Knowledge Realty Trust IPO? The minimum lot size is 150 units, priced between Rs 95 to Rs 100 per unit, totaling approximately Rs 15,000.
• When does the IPO open and close? The IPO opens on 5 August 2025 and closes on 7 August 2025.
• Who are the major sponsors? Blackstone and Sattva Group are the primary sponsors of Knowledge Realty Trust.
• What is a REIT? A Real Estate Investment Trust is a company owning or financing income-producing real estate, providing investors access to real estate assets through listed units.
• How soon will the shares be listed? The listing is scheduled for 12 August 2025.

How to Apply

Investors can apply for the Knowledge Realty Trust IPO through various platforms including leading stockbrokers like Zerodha, Upstox, and Groww. The IPO subscription can be done via ASBA facility in your bank or through online trading accounts.

For detailed application steps and updates, visit the official IPO page on Zerodha or trusted IPO information portals.