NewsCorporate ActionsKnowledge Realty Trust Approves INR 3,200 Crore Fundraising Through NCDs and Term LoanKnowledge Realty Trust Approves INR 3,200 Crore Fundraising Through NCDs and Term Loan
Knowledge Realty Trust (KRT) has approved fundraising of INR 3,200 crore. This includes INR 1,600 crore through non-convertible debentures (NCDs) and a term loan facility of up to INR 1,600 crore from Bajaj Housing Finance Limited. The NCDs will be issued via private placement, with 1,60,000 NCDs at a face value of INR 1 lakh each, to be listed on BSE Limited with a 3-year tenure. The board also granted in-principle approval for future debt raising, subject to a 25% cap on total consolidated net indebtedness. Security measures for the NCDs include charges on bank accounts, receivables, and immovable properties. KRT also received approval to join the Indian REITs Association, with CEO Shirish Godbole as the trust's nominee.
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Knowledge Realty Trust (KRT), a prominent player in the real estate investment trust sector, has announced significant fundraising initiatives totaling INR 3,200 crore. The board of KRT's manager, Knowledge Realty Office Management Services Private Limited, approved these measures in a meeting held on September 15, 2025.
Non-Convertible Debentures Issuance
The board has given the green light for raising INR 1,600 crore through the issuance of non-convertible debentures (NCDs) via private placement. The key details of this NCD issuance are as follows:
| Parameter | Details |
|---|---|
| Number of NCDs | 1,60,000 |
| Face Value | INR 1 lakh per NCD |
| Total Amount | INR 1,600 crore |
| Listing | To be listed on BSE Limited |
| Tenure | 3 years from the deemed date of allotment |
The NCDs will be issued to eligible investors, including multilateral financial institutions, in one or more transactions, series, or tranches.
Term Loan Facility
In addition to the NCD issuance, KRT has approved availing a term loan facility of up to INR 1,600 crore from Bajaj Housing Finance Limited. This facility includes:
- A primary term loan (lease rental discounting) of INR 1,600 crore
- A flexi term loan sub-limit of INR 200 crore
Future Debt Raising
The board has also granted in-principle approval for future debt raising through various instruments such as non-convertible debentures, commercial paper, and term loans. This approval comes with the condition that the total consolidated net indebtedness of KRT and its portfolio assets should not exceed 25% of the latest available Gross Asset Value.
Security Measures
To secure the NCDs, the following measures will be implemented:
- A first-ranking pari-passu charge by way of hypothecation will be created by Devbhumi Realtors Private Limited (DRPL) over identified bank accounts and receivables from the property to be mortgaged.
- A first-ranking pari-passu charge by way of mortgage will be created by DRPL over its identified immovable properties in Hyderabad.
- DRPL will issue a corporate guarantee as additional security.
Indian REITs Association Membership
In a move to strengthen its industry presence, KRT has received approval to become a member of the Indian REITs Association (IRA). The board has appointed Mr. Shirish Godbole, the Chief Executive Officer of KRT, as the trust's nominee to be appointed on the IRA's board.
These strategic financial decisions demonstrate Knowledge Realty Trust's commitment to growth and its efforts to optimize its capital structure. The fundraising initiatives are expected to provide KRT with the necessary resources to pursue its expansion plans and enhance its portfolio of real estate assets.
Historical Stock Returns for Knowledge Realty Trust
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.42% | +1.57% | +3.71% | +12.45% | +12.45% | +12.45% |
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