Knowledge Realty Trust Makes Modest Debut with 3% Premium, Meeting Market Expectations.

Knowledge Realty Trust REIT, backed by Blackstone and Sattva Developers, made a positive debut on BSE and NSE on August 18, 2025. After closing its IPO bidding between August 5-7, 2025, the company commenced trading with a modest 3% premium at ₹103 on NSE and ₹104 on BSE, meeting market expectations and reflecting measured investor confidence in the office REIT sector.

Knowledge Realty Trust Listing Details

Knowledge Realty Trust REIT IPO launched at ₹100 per share with a minimum investment of 150 shares costing ₹15,000. The IPO received a strong response with a subscription of 12.48 times - NII leading at 16.57 times, QIB at 9.07 times, indicating solid institutional and high net worth investor interest in the office real estate investment trust business.

Don’t Miss Out on the Next Big IPO – Invest With Just a Few Clicks!

Open Account Now

First-Day Trading Performance Outlook

Listing Price: The Knowledge Realty Trust share price opened at ₹103 on NSE and ₹104 on BSE, representing premiums of 3% and 4% respectively from the issue price of ₹100, delivering steady gains for investors and meeting market expectations for the REIT debut.

Growth Drivers and Challenges

Growth Drivers:

Market Leadership Position: India's largest office REIT by Gross Asset Value worth ₹619,989 million and the second largest globally by leasable area, providing significant scale advantages and market dominance.

High-Quality Portfolio: Premium Grade A office assets totalling 46.3 million square feet across strategic locations in Mumbai, Hyderabad, Bengaluru, Chennai, Gurugram, and GIFT City with 91.4% committed occupancy.

Diversified Tenant Base: Strong tenant mix including Fortune 500 companies, Global Capability Centres, and leading domestic corporates, ensuring stable rental income and reduced concentration risk.

Renowned Sponsors: Backed by Blackstone and Sattva Developers, with global experience and local market knowledge, providing strategic guidance and growth opportunities.
 

Challenges:

Declining Profitability: PAT dropped by 34% to ₹222.52 crore in FY25 from ₹339.66 crore in FY24, raising concerns about operational efficiency and market conditions affecting returns.

High Debt Burden: Total borrowings of ₹19,792.17 crore create financial leverage concerns and affect cash flow distribution capabilities to unit holders.

Market Cyclicality: The Office real estate sector's dependence on economic cycles and corporate expansion plans exposes the REIT to market volatility and demand fluctuations.

Utilisation of IPO Proceeds

Debt Reduction: ₹4,640 crore for partial or full repayment of financial indebtedness of Asset SPVs and Investment Entities, improving the capital structure and reducing financial leverage burden.

General Purposes: Remaining proceeds allocated for general corporate purposes supporting business operations and strategic initiatives in the office real estate sector.

Financial Performance of Knowledge Realty Trust

Revenue: ₹4,146.86 crore for FY25, showing growth of 16% from ₹3,588.48 crore in FY24, reflecting steady demand for premium office spaces and rental income growth. Net Profit: ₹222.52 crore in FY25, representing a decline of 34% from ₹339.66 crore in FY24, indicating operational challenges and market pressures affecting profitability. Financial Metrics: Total assets of ₹24,768.08 crore, EBITDA of ₹3,293.03 crore showing 16% growth, total borrowings of ₹19,792.17 crore, and the distinction of being India's largest office REIT by GAV with strong market positioning.

The company's modest debut meeting market expectations demonstrates measured investor confidence in the office REIT sector, positioning Knowledge Realty Trust for steady income distribution despite profitability challenges and high debt levels.