NewsIPOKnowledge Realty REIT Secures Rs 1,620 Crore from Anchor Investors, Including LIC and Jhunjhunwala TrustKnowledge Realty REIT Secures Rs 1,620 Crore from Anchor Investors, Including LIC and Jhunjhunwala Trust
Knowledge Realty Trust REIT has raised ₹1,620 crore from over 50 institutional investors in its anchor round before the IPO. Notable participants include LIC, Jhunjhunwala Trust, Tata AIG, Nippon MF, Axis MF, PIMCO, SBI Pension Fund, Amundi, and Wells Capital. The IPO price band is set at ₹95-100 per unit, with a fresh issuance of ₹4,800 crore. LIC made its first-ever investment in a REIT IPO. The trust had previously raised ₹1,400 crore in a pre-IPO round. The IPO will offer ₹1,980 crore to the public, with ₹1,080 crore allocated to institutional investors and ₹900 crore to retail and HNI investors. Funds will be used for debt repayment and general corporate purposes.
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Knowledge Realty Trust REIT has successfully raised Rs 1,620 crore from anchor investors, marking a significant milestone ahead of its Initial Public Offering (IPO). The fundraising effort has garnered attention from over 50 institutional investors, showcasing strong market interest in the Real Estate Investment Trust sector.
Key Highlights
| Aspect | Detail |
|---|---|
| Total Funds Raised | Rs 1,620 crore |
| Number of Institutional Investors | Over 50 |
| Notable Participants | LIC, Jhunjhunwala Trust, Tata AIG, Nippon MF, Axis MF, PIMCO, SBI Pension Fund, Amundi, and Wells Capital |
| IPO Price Band | Rs 95-100 per unit |
| Fresh Issuance | Rs 4,800 crore |
LIC's Landmark Investment
In a noteworthy development, the Life Insurance Corporation of India (LIC) has made its first-ever investment in a REIT IPO, underscoring the growing appeal of REITs among institutional investors.
Pre-IPO Funding Success
Prior to this anchor investment round, Knowledge Realty REIT had already demonstrated its appeal to high-profile investors. The trust raised Rs 1,400 crore in a pre-IPO round, attracting investments from prominent figures such as RK Damani and Karan Bhagat Trust.
IPO Structure and Allocation
The upcoming IPO is structured to offer a total of Rs 1,980 crore to the public, with the following allocation:
- Institutional Investors: Rs 1,080 crore
- Retail and HNI Investors: Rs 900 crore
Investors interested in participating in the IPO should note that the minimum application size is set at Rs 15,000.
Use of Proceeds
The funds raised through this IPO will be primarily utilized for:
- Debt repayment of underlying asset Special Purpose Vehicles (SPVs)
- General corporate purposes
Regulatory Significance
This IPO marks a significant milestone as it is the first REIT offering to be launched under the Securities and Exchange Board of India's (SEBI) new master circular issued in July. This regulatory update reflects the evolving landscape of REIT investments in India.
Market Implications
The strong response from anchor investors, including both domestic and global institutions, signals growing confidence in the Indian REIT market. The participation of diverse investors, from insurance giants to mutual funds and global asset managers, underscores the broad appeal of this investment vehicle.
As the Knowledge Realty REIT prepares to open its IPO for public subscription, the robust anchor book is likely to generate significant interest among retail and high net-worth individual investors. This IPO could potentially set a new benchmark for REIT offerings in the Indian market, further solidifying the position of REITs as an attractive investment option for those seeking exposure to the real estate sector.
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