Bagmane Prime Office REIT files draft IPO papers

Bagmane Prime Office REIT filed its draft offer document with SEBI on Tuesday, proposing a ₹4,000 crore public issue.

The offer comprises a fresh issue of up to ₹3,000 crore and an offer for sale of up to ₹1,000 crore. Pricing and timelines remain open, but the structure signals a transaction aimed squarely at institutional capital rather than retail momentum.

If it proceeds, Bagmane would join a small but growing group of listed office REITs competing for long-duration capital in a market that is now far more selective than it was during the first REIT listings.

Bagmane’s proposed portfolio is large even by listed REIT standards. The assets span about 20.3 million square feet, largely concentrated in Bengaluru, India’s deepest office market. Occupancy stands at 97.9% as of June 30, 2025, suggesting limited near-term vacancy risk but also modest immediate upside from leasing alone.

The REIT’s gross asset value is estimated at roughly ₹38,790 crore, while post-issue leverage is projected at about 7%. That balance sheet positioning places Bagmane among the least levered office REITs at listing, a clear attempt to differentiate itself at a time when investors are increasingly sensitive to debt and refinancing risk.

According to projections in the draft document, Bagmane expects net operating income of about ₹2,670 crore in FY27. The filing also flags a mark-to-market potential of just over 20%, pointing to some rental reversion opportunity but not a dramatic reset in yields.

That framing is notable. Unlike earlier REIT listings that leaned heavily on growth narratives, Bagmane’s disclosures lean toward income visibility and balance sheet conservatism. The right-of-first-offer pipeline of more than 47 million square feet adds optionality, but it remains just that, optional rather than embedded into near-term earnings.

The IPO structure follows standard REIT norms, with up to 75% reserved for institutional investors and at least 25% for non-institutional bidders. In practice, pricing will likely be driven by anchor demand and global yield comparisons rather than headline subscription numbers.

Bagmane’s entry comes at a moment when India’s office REITs are being judged less on portfolio size and more on distribution stability, tenant quality, and discipline around leverage. Whether the issue clears comfortably will depend not just on the strength of the assets, but on how convincingly the cash flows hold up against global office REIT yields in a higher-rate environment.

JM Financial, Kotak Mahindra Capital, Axis Capital, IIFL Capital Services, SBI Capital Markets, 360 ONE, and HDFC Bank are acting as book running lead managers to the issue.