Knowledge Realty Trust OFS opens today: From floor price to issue size, key things investors must know

Knowledge Realty Trust OFS: Units of Knowledge Realty Trust Ltd. were trading lower on Monday, August 31, after Blackstone-linked entities launched an offer for sale (OFS) in the REIT on Friday. The units fell as much as 2.5% to an intraday low of ₹110.49 on the BSE.

The floor price for the OFS has been set at ₹108 per unit. The base issue size represents 16.69% of the Trust's unit capital and amounts to ₹7,992 crore. It also includes a greenshoe option of 8.34% of the Trust's unit capital, worth up to ₹3,996 crore. If the greenshoe option is included, the total potential transaction value could rise to around ₹11,988 crore.

The sellers are looking to offload up to 74 crore units initially, with a greenshoe option to sell another 37 crore units if demand is strong, potentially taking the total offer size to 111 crore units, or 25.03% of the Trust's unit capital. The OFS is being undertaken to help achieve the minimum public unitholding requirement prescribed for REITs.

Key Things Investors Must Know

OFS Dates: The offer is scheduled across August 31 and September 1, 2026, with bidding open from 9:15 am to 3:30 pm on both days through a separate window on the BSE and NSE.

Only non-retail investors can place fresh bids on August 31. Those whose bids remain unallotted can choose to carry them forward to the next day and revise them in accordance with the OFS guidelines.

Retail investors can bid on the second day of the offer, September 1. Non-retail investors who had opted to carry forward their unallotted bids from the first day can also participate through the prescribed mechanism.

OFS Details: Knowledge Realty Trust, which is India's largest real estate investment trust (REIT), is co-sponsored by the Sattva Group and Blackstone.

An OFS permits existing shareholders to sell their units to investors through the stock exchanges. Unlike a fresh issue, the money raised through the sale goes to the selling unitholders instead of the REIT.

The sellers are BREP Asia SG L&T Holding (NQ) Pte. Ltd., BREP Asia SG DRPL Holding (NQ) Pte. Ltd., BREP Asia II Indian Holding Co IV (NQ) Pte. Ltd. and BREP Asia II Indian Holding Co VII (NQ) Pte. Ltd. All four are sponsor-group members of Knowledge Realty Trust.

The sellers are undertaking the offer to achieve the minimum public unitholding requirement applicable to the Trust under SEBI's REIT regulations. Importantly, bidders who do not qualify as ‘public’ under the REIT Regulations will not be allowed to participate in the OFS.

Reservation: A minimum of 10% of the offer units will be reserved for retail investors, subject to valid bids. For this OFS, a retail investor is defined as an individual whose total bid value does not exceed ₹2 lakh across the stock exchanges. At least 25% of the offer units will be reserved for SEBI-registered mutual funds and eligible insurance companies, subject to receipt of valid bids at or above the floor price.

Shareholding: At the end of the June quarter, sponsor entities held a 78.56% stake in Knowledge Realty Trust, while public unitholding stood at 21.44%, as per data available on the stock exchanges.

At least 25% of the offer units will be reserved for mutual funds and insurance companies, provided they submit valid bids at or above the floor price. Any unsubscribed portion may subsequently be made available to other non-retail bidders.

Brokers: The sellers have appointed eight brokers for the OFS, including IIFL Capital Services, Axis Capital, JM Financial Institutional Securities, Kotak Securities, 360 ONE Capital Market, 360 ONE Distribution Services, SBICAP Securities and Sunidhi Securities and Finance. IIFL Capital Services will act as the settlement broker.

REIT Performance: Knowledge Realty Trust has been under pressure in recent times. It fell 5% in 1 week, 6% in 1 month, and over 7% in 3 months. Meanwhile, in the last 1 year, it has added around 4%.

It had hit its 52-week high of ₹129.49 in December 2025 and its 52-week low of ₹106.53 in September 2025.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.