Knowledge Realty Trust IPO GMP: A detailed look

Knowledge Realty Trust IPO GMP: A detailed look

The Knowledge Realty Trust REIT (Real Estate Investment Trust) IPO, which opened today (August 5, 2025) and closes on August 7, 2025, aims to raise ₹4,800 crore. Here's a detailed breakdown of the IPO, its key features, and potential investment considerations:

Company overview

• Knowledge Realty Trust is poised to be India's largest office REIT by Gross Asset Value (GAV) and Net Operating Income (NOI).

• It is also considered the second-largest office REIT globally based on leasable area.

• The trust is sponsored by the Sattva Group and Blackstone.

• Its portfolio includes 30 premium Grade-A office assets in major Indian cities.

• These assets encompass a significant amount of completed, under construction, and planned development area.

Business model & strengths

• KRT operates by investing in income-generating commercial properties.

• The primary goal is to generate and distribute rental income to investors as dividends, with a requirement to distribute at least 90% of net distributable cash flow.

• Key strengths highlighted include:

  • Stable rental income, with over 85% from multinational corporations.

  • High occupancy and Weighted Average Lease Expiry (WALE).

  • Strategic locations in top-tier Indian cities.

  • Diversified tenant base, including Fortune 500 companies and leading Indian corporates.

IPO details

• Issue Size: ₹4,800 crore, consisting entirely of a fresh issue of 48 crore units.

• Price Band: ₹95 to ₹100 per unit.

• Minimum Investment (Retail): ₹14,250 for a lot of 150 shares.

• Listing: BSE and NSE.

• Tentative Listing Date: August 18, 2025.

Grey market premium (GMP)

• As of August 5, 2025, the GMP is ₹0, suggesting an expected listing at the issue price.

• It is important to remember that GMP is based on speculative market sentiment and can change.

Financial performance (FY25)

• Revenue from operations and net operating income saw increases in FY25 compared to previous years.

Investment considerations

• Stable Income Stream: REITs are known for high dividend payouts.

• Growth Potential: Potential growth drivers include rental escalations and the REIT's expansion plans.

• Market Leadership: KRT's position as India's largest office REIT provides a competitive advantage.

• Risks: Like all investments, REITs are subject to market, interest rate, and real estate market risks. Investors should evaluate these factors.

Knowledge Realty Trust REIT IPO offers investors a chance to participate in India's commercial real estate sector. Its strong fundamentals and income potential may be attractive. However, careful consideration of market conditions and investment risks is advisable before making a decision.