Knowledge Realty Trust REIT IPO: India’s largest office REIT-strategy, share price & key IPO details
- Krishna Priya
- Jul 31
- 3 min read
The Knowledge Realty Trust IPO is priced in the band of ₹95-₹100 per unit, requiring a minimum application of 150 units, amounting to ₹14,250 at the lower end.
IPO Snapshot
Total Issue Size: | ₹4,800.00 Cr |
Fresh Issue: | ₹4,800.00 Cr |
Offer for Sale: | – |
Price Band: | ₹95 to ₹100 per unit |
Lot Size: | 150 units |
Minimum Investment: | ₹14,250 (at lower band) |
Listing: | BSE, NSE |
IPO Opens: | August 5, 2025 |
IPO Closes: | August 7, 2025 |
Knowledge Realty Trust is India’s largest office REIT by Gross Asset Value (₹61,998.9 crore as of March 31, 2025) and the second largest globally by leasable area. Its portfolio comprises 30 premium Grade A office properties totaling 46.3 million sq. ft., including 37.1 million sq. ft. of completed space, 1.2 million sq. ft. under construction, and 8.0 million sq. ft. of future development potential. These assets are strategically spread across India’s six leading commercial hubs, Hyderabad, Mumbai, Bengaluru, Chennai, Gurugram, and GIFT City, providing a well-diversified geographical footprint and access to India’s top-performing business districts.
The REIT boasts a committed occupancy of 91.4% and a Weighted Average Lease Expiry (WALE) of 8.4 years, backed by a robust tenant base that includes over 450 companies such as Fortune 500 firms, Global Capability Centers (GCCs), and leading Indian corporates. The portfolio is designed for modern workspaces, offering amenities like food courts, wellness centers, sports zones, medical clinics, and exclusive members-only facilities. Sponsored by Blackstone and Sattva, names synonymous with global financial strength and local execution excellence, Knowledge Realty Trust blends institutional-grade stability with strong embedded growth potential.
Projected financial metrics
Metric | FY26 | FY27 | FY28 | FY29 |
Revenue from Operations (in Cr) | ₹4,727.8 | ₹5,280.5 | ₹5,619.1 | ₹6,058 |
NOI Margin (%) | 90.5% | 90.6% | 90.7% | 90.8% |
EBITDA Margin (%) | 85.0% | 85.0% | 85.2% | 85.3% |
NDCF (in Cr) | ₹2,750.3 | ₹3,120 | ₹3,308.6 | ₹3,523.8 |
Knowledge Realty Trust is projected to deliver stable and growing cash flows over the next four years, driven by high operational efficiency. The REIT expects NOI margins to stay above 90% and EBITDA margins around 85%, reflecting disciplined cost management and healthy rental yields. NDCF is projected to rise from ₹2,750 crore in FY26 to ₹3,524 crore by FY29, indicating strong distributable capacity. While specific distribution yields have not been disclosed, the combination of robust margins, scale, and asset quality suggests potential for consistent quarterly payouts. Of the projected NDCF, 62% to 76% is expected to be distributed as dividends, with the balance structured as interest income and capital repayment, an approach designed to enhance post-tax returns for investors.
Peer Comparison
Metric | Knowledge Realty Trust | Embassy REIT | Mindspace REIT | Brookfield REIT |
Revenue from Operations | ₹3,930.1 Cr | ₹4,038.9 Cr | ₹2,562.7 Cr | ₹2,385.6 Cr |
EBITDA | ₹3,293.02 Cr | ₹3,308.6 Cr | ₹1,951.9 Cr | ₹1,910.7 Cr |
EBITDA Margin (%) | 83.8% | 81.9% | 76.2% | 80.09% |
Net Distributable Cash Flow (NDCF) | — | ₹2,184.6 Cr | ₹1,321.3 Cr | ₹1,138.8 Cr |
Use of proceeds
The net proceeds from the Knowledge Realty Trust REIT IPO will primarily be used for the partial or full repayment and prepayment of certain financial indebtedness of the underlying Asset SPVs and Investment Entities, with an allocation of approximately ₹4,640 crore towards debt reduction. This move is intended to strengthen the REIT’s balance sheet, lower interest expenses, and enhance distributable cash flows. The remaining funds will be utilized for general corporate purposes, supporting operational flexibility and long-term growth initiatives.
Risk
High Leverage: Debt stood at ₹197,921.7 Cr (March 2025), rising to ₹208,276.8 Cr (July 2025). A 100 bps interest rate hike could cut profits by ~₹1,747 Cr annually.
Tenant Concentration: The top 10 tenants contribute 28.4% of rentals, with 74.1% from multinationals and 61% from IT & BFSI sectors, heightening sector-specific risk.
Lease Renewal Risk: Occupancy is 91.4% with WALE of 8.4 years. Any early exits or non-renewals could materially impact revenues.
Litigation Exposure: The One Qube property is under a pending High Court intervention case, which could affect its validity and revenue stream.
Valuation Dependence: Asset valuations are indicative and assumption-based; deviations in rental growth or construction costs could reduce NAV and investor returns
Disclaimer: This content is for educational purposes only; please conduct your own research and consult with a qualified investment advisor before making any investment decisions.
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