Sellers of Knowledge Realty Trust have exercised their oversubscription option in the ongoing offer for sale, adding 370,000,000 units to the base offer. The move increases the total potential offer size to 1,110,000,000 units, representing 25.03% of the unit capital.

The intimation was filed with the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE) on August 28, 2026. The exercise of the option is intended to help achieve the minimum public unitholding prescribed under SEBI regulations.

Offer Structure Update

The original proposal included a base offer of 740,000,000 units (16.69% of unit capital) with an option to sell an additional 370,000,000 units (8.34%). With the option now exercised, the total offer stands at 1,110,000,000 units.

Seller-Wise Breakdown

Three of the four selling entities have opted to sell units under the oversubscription option. BREP Asia SG L&T Holding (NQ) Pte Ltd did not exercise its portion of the option.

Pricing and Timeline

The floor price for the offer remains set at ₹108 per unit. The bidding process continues as scheduled over two days. Non-retail investors can bid on August 31, 2026, from 9:15 am to 3:30 pm. Retail investors, along with non-retail investors carrying forward unallotted bids, can participate on September 1, 2026, during the same trading hours.

Retail investors are defined as individuals placing bids not exceeding ₹2,00,000. A minimum of 10% of the offer units is reserved for this category. Additionally, at least 25% of the offer units are reserved for mutual funds and insurance companies, subject to valid bids at or above the floor price.

Allocation Methodology

Allocation in the non-retail category follows a price priority basis at multiple clearing prices. In case of oversubscription, allocation is proportionate. Retail investors may bid at a specific price or opt for the cut-off price, which is determined by the lowest price at which units are sold in the non-retail category on the first day.

IIFL Capital Services Limited acts as the settlement broker, while BSE serves as the designated stock exchange. NSE Clearing Limited is the designated clearing corporation. Eight brokers, including Axis Capital Limited, JM Financial Institutional Securities Limited, and Kotak Securities Limited, have been appointed to facilitate the offer.

Blackstone Group has announced plans to sell up to $1.25 billion worth of its stake in Knowledge Realty Trust . The move signals a major exit strategy for the global private equity giant from one of its key Indian real estate investments.

The transaction involves the disposal of a substantial portion of Blackstone’s holdings, reflecting broader portfolio rebalancing efforts within the firm’s emerging markets division. Knowledge Realty Trust, one of India’s largest real estate investment trusts by asset value, will see a significant change in its shareholder structure following this deal.

Transaction Details

The sale value of $1.25 billion underscores the scale of Blackstone’s initial investment and the appreciation in the underlying commercial real estate assets held by the trust. While specific terms regarding the buyer or the timeline for closure were not detailed in the report, the magnitude of the stake suggests a strategic divestment rather than a partial liquidity raise.

Market Implications

For Knowledge Realty Trust, the exit of a dominant anchor investor like Blackstone could lead to increased volatility in its unit trading price in the short term. However, it also opens avenues for new institutional investors to enter the trust, potentially bringing fresh capital and strategic direction.

What the Numbers Show

The sheer size of the $1.25 billion stake indicates that Blackstone likely holds a controlling or near-controlling interest in the trust. This level of exposure highlights the concentration risk for investors who relied on Blackstone’s active management and balance sheet strength as a stabilizing factor for the REIT’s performance and distribution consistency.