Knowledge Realty Trust’s highly anticipated Real Estate Investment Trust IPO opened for bidding on August 5 and saw a promising start. On its very first day, the IPO was subscribed 1.22 times, with bids pouring in for over 23.45 crore units against the 20.84 crore units on offer. This strong opening indicates growing investor appetite for REITs in India, especially among retail and corporate participants.
The IPO is among the biggest REIT offerings of the year and marks a key moment for India’s evolving real estate investment market. While institutional participation remained cautious, retail and non-institutional investors drove momentum. The non-institutional investor category, which includes high-net-worth individuals and corporates, saw the highest level of interest, with 15.95 crore bids for 9.47 crore shares, translating to a subscription rate of 1.78 times.
Institutional investors, however, showed moderate enthusiasm. The reserved quota for this category stood at 11.36 crore shares, but only 7.5 crore bids were received, which means the institutional portion was subscribed at 0.75 times on the opening day. While not fully booked, this level of institutional response still reflects interest, especially given broader market volatility and global macroeconomic uncertainty.
)
Industry experts believe that the IPO’s performance reflects a rising trust in REITs as a stable and transparent investment option. Knowledge Realty Trust, which operates rent-generating properties across six major Indian cities, has built a strong reputation for consistent dividend payouts and healthy occupancy rates. Backed by Blackstone, one of the world’s largest real estate investors, the trust is seen as a credible long-term player in the Indian REIT space.
The Knowledge Realty IPO is particularly significant in the backdrop of a rising shift in investment preferences. As investors look for alternatives to traditional equity or debt instruments, REITs are emerging as an attractive vehicle, combining regular income with long-term capital appreciation. The IPO comes at a time when SEBI has also been working to broaden retail access to REITs, with new frameworks such as the Small and Medium REIT structure aimed at making the market more inclusive.
This IPO’s strong first-day response also shows that investor confidence in Indian commercial real estate is holding firm. With a portfolio that includes prime office spaces, logistics parks, and mixed-use properties, Knowledge Realty Trust offers diversified exposure to stable assets that can generate predictable returns over time.
Market observers will be closely watching how the institutional portion performs in the next two days of bidding. A pickup in demand from mutual funds, pension funds, and other long-term investors could significantly boost the IPO’s final subscription numbers.
If the momentum continues, the IPO could further solidify REITs as a mainstream investment product in Indian capital markets. With growing awareness and increasing regulatory support, REITs are set to play a larger role in portfolio strategies for retail and institutional investors alike.
For more insights on REITs, IPOs, and smart investing trends, follow You Finance on Instagram and Facebook.
