Knowledge Realty Trust opens Rs 4,800 cr IPO Tuesday
Tired of too many ads? go ad free now
Upon listing, KRT is expected to become India's largest office REIT and the second-largest in Asia by gross asset value. The issue closes on Thursday.
Ahead of the IPO, KRT raised Rs 1,400 crore in a pre-IPO placement from family offices and high-net-worth investors. This early round led to a reduction of the size of the public issue from the originally planned Rs 6,200 crore to Rs 4,800 crore.
The IPO will be conducted through a book-building process, with 75% of the offer (excluding the strategic investor portion) reserved for institutional investors and at least 25% for non-institutional bidders.
The minimum bid size is 150 units, amounting to Rs 15,000.
All proceeds from the issue will be used to pare debt, which will bring down the REIT's loan-to-value ratio to 19%. 'The entire offering is to reduce debt. That gives us one of the lowest leverage levels among REITs and positions us strongly for growth,' Shirish Godbole, CEO of Knowledge Realty Trust, told TOI.
KRT's portfolio spans 29 Grade-A office properties across six cities – Hyderabad, Bengaluru, Mumbai, Chennai, Gurugram and GIFT City – covering 46.3 million sft, including 9.2 million sft of under-construction and future development.
Its gross asset value stands at Rs 62,000 crore.
Godbole said KRT's edge lies in its location quality and expansion strategy. 'We have assets in irreplaceable micro-markets such as Hyderabad's HITEC City, Mumbai's BKC and Lower Parel and Bengaluru's Outer Ring Road. These locations not only capture upside during market growth but also hold value in downturns,' he told TOI.
Quaiser Parvez, COO of KRT, highlighted the REIT's tenant profile as another differentiator.
Tired of too many ads? go ad free now
'We have 450 occupiers, 76% of them multinationals, with no single tenant contributing more than 6% of our gross rents. About 45% of our rent comes from global capability centres. This gives us minimal concentration risk,' Parvez said.
KRT also plans to pursue third-party acquisitions through a 'brand-neutral' platform that allows local developers to retain their branding while monetising assets. 'This approach opens the door to acquisitions from smaller size builders of Grade A assets across key markets, non-strategic owners such as family offices or corporates, something Indian REITs have barely tapped,' Godbole said.
Another distinguishing factor, according to Godbole, is KRT's limited exposure to special economic zone (SEZ) assets. 'Tenants today prefer non-SEZ space because SEZs have lost their tax benefits but continue to carry compliance requirements. Our lower SEZ exposure positions us better for demand,' he noted.
Lead managers for the IPO include Kotak Mahindra Capital, Axis Capital, BofA Securities India, ICICI Securities, IIFL Capital, JM Financial, Morgan Stanley India and SBI Capital Markets. The units are proposed to be listed on the NSE and BSE.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
11 minutes ago
- Mint
Trump's tariffs on India: Experts unveil this strategy for Indian stock market investors
Trump's tariffs on India: U.S. President Donald Trump, on Wednesday, an additional 25 per cent tariff on Indian imports as a punitive measure in response to New Delhi's ongoing purchases of Russian crude oil. With this move, the total U.S. tariff on Indian exports now stands at 50 per cent — 20 percentage points higher than the tariff on Chinese goods — posing a serious blow to India's export competitiveness. The revised tariff regime, revealed late Wednesday, is set to take effect after a 21-day grace period beginning August 27, 2025. Although this period offers a brief opportunity for diplomatic negotiations, both nations currently face limited avenues for resolution. Indian benchmark indices, Sensex and Nifty50, opened lower for the third consecutive session on Thursday, as investor sentiment was hit by the United States' decision to impose an additional 25% tariff on exports, sparking fears of economic repercussions and escalating global trade tensions. By 9:21 am, the BSE Sensex had dropped 266 points, or 0.33%, to 80,359, while the Nifty50 was trading 71 points lower, or 0.3%, at 24,502. " This punitive step threatens to derail the Indo-US strategic and economic relationship, which has evolved steadily since 1998. The implications of these levies extend beyond trade and into critical areas such as technology partnerships, H-1B visa access for Indian tech talent, cross-border capital flows, and the future of US firms' offshore manufacturing in India. The Indian government has strongly denounced the new measures as "unfair, unjustified, and unilateral", and is expected to explore both diplomatic and trade avenues to defend national interests. However, the near-term sentiment in financial markets is likely to remain cautious, as investors brace for potential retaliatory moves and await clarity from upcoming negotiations," said Sugandha Sachdeva- Founder-SS WealthStreet. According to Sachdeva, Nifty is hovering near a key support zone at 24,450, and a breach below this level could trigger a swift decline toward 24,180 in the short term. Key resistance in the near-term rests at the 24,750 and 24,950 levels. " Broader market sentiment may remain under pressure amid geopolitical uncertainty, with volatility expected to intensify, particularly in sectors sensitive to global trade flows, energy imports, and foreign capital exposure. Until there is visible progress on the diplomatic front or signs of a softened stance from the US administration, risk sentiment is expected to stay fragile, and a defensive approach may prevail among market participants. Eyes would also be on the Q1 earnings from several key companies which shall also influence the direction of the market," she said. Santosh Meena, Head of Research at Swastika Investmart, said that India remains a domestic consumption-driven economy, with limited direct exposure to the U.S., except in key sectors like IT, pharmaceuticals, and electronics, which are exempt from the current tariff announcement. However, sectors such as textiles, gems & jewellery, and leather may face sentimental pressure in the near term. Long-Term Investors: Stay the course. This development is a part of ongoing global trade tensions and shouldn't distract from India's long-term growth potential. Near-term volatility is an opportunity—not a threat—for long-term investors. Short-Term Traders: Exercise caution. The short-term outlook remains uncertain due to a combination of muted Q1 earnings, stretched valuations, and global trade tensions. Market texture appears weak in the near term, so a defensive and selective approach is advisable. However, any significant correction should be seen as a buying opportunity, as earnings momentum is expected to improve from the next quarter onward. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
11 minutes ago
- Economic Times
India is the 'Maharaja of Tariffs', says Trump aide amid escalating US-India trade tensions
Synopsis The US has increased tariffs on Indian goods, citing unfair trade practices. Peter Navarro called India the 'maharaja of tariffs'. He linked India's purchase of Russian oil to the Ukraine war funding. India has strongly protested the US tariff move. India stated that its energy imports are driven by national interest. TIL Creatives AI generated image. White House Trade Adviser Peter Navarro has criticised India's trade practices, calling the country the 'maharaja of tariffs' while defending the US administration's decision to impose steep import duties on Indian has responded strongly to the US tariff move, calling the measures 'unfair, unjustified and unreasonable.' Prime Minister Narendra Modi, too, on Thursday said that India will not compromise on interests of its dairy and farm sector. The additional 25% import duty announced by the US, effective August 27, takes the total tariff on Indian goods entering American markets to 50%. 'You start with the fact that India is the maharaja of tariffs. It's the highest tariffs in the world, charging on American products, and it's got high non-tariff barriers, so we can't get our products in. So we send a lot of dollars overseas to India to buy their products in an unfair trade environment,' Navarro said. Also Read: PM Modi says ready to pay 'heavy price' for farmers' welfare as US trade war continues He linked these trade imbalances to geopolitical concerns, stating that the money spent on Indian imports is used by New Delhi to purchase Russian oil, which in turn funds Moscow's war in Ukraine. 'India then uses American dollars to buy Russian oil. Russia then uses those American dollars that come from India to finance its armaments to kill Ukrainians. And then American taxpayers are then called upon to pay for the weapons that have to defend Ukraine against Russian armaments paid for by American dollars that came from India,' Navarro further emphasised that the rationale for these tariffs differs from the US policy toward China, where similar duties are in place. 'Let's talk first about the India tariffs, which went up to 50 per cent today. It's important to understand that the rationale for the Indian tariffs are very different from the reciprocal tariffs. This was a pure national security issue associated with India's abject refusal to stop buying Russian oil,' he said. Also Read: Reciprocal tariffs begin at midnight, billions of dollars will flow into USA: Trump Navarro noted that while the US already imposes tariffs exceeding 50% on Chinese goods, it is careful not to harm its own economic interests in the process. 'As the boss says, let's see what happens. Keep in mind that we have over 50 per cent tariffs on China already. We have over 50 per cent tariffs on China, so we don't want to get to a point where we actually hurt ourselves. And I think I've given a really good answer to that,' he added. He also said President Donald Trump views economic decisions as integral to national security. 'That's got to stop. That math doesn't work. The president understands the connection between economic security and national security. So that was the bottom line there.'
Hindustan Times
11 minutes ago
- Hindustan Times
Rupee holds its own amid Trump tariff hike, traders say ‘had factored it in'
The Indian rupee was moving within a narrow range and went up by marginally, by 5 paise, to 87.67 against the US dollar in early trade on Thursday. This was even after US President Donald Trump slapped an additional 25 per cent tariffs, taking the total to 50 per cent, on India over its imports of Russian oil. "The rupee's measured response to the new tariffs likely reflects the Reserve Bank of India's (RBI) resolve to prevent a breach of the all-time low of 87.95," says a trader.(Reuters) The 25 per cent announced earlier has now come into effect, while the 'penalty' 25 per cent kicks in later this month. But currency traders had already said the rupee won't be hit badly for now as Trump's move was largely expected and factored in, Reuters reported. On Wednesday, the prediction was that the rupee will open in the 87.70-87.75 range, largely unchanged from Wednesday's close of 87.73. "We knew more tariffs were coming after all those hints by Trump," a currency trader at a private sector banks told Reuters. The rupee's measured response to the new tariffs likely reflects the Reserve Bank of India's (RBI) resolve to prevent a breach of the all-time low of 87.95, the trader was further quoted as saying.
