Highlights
| Issue Size – 340,500,000 shares | Issue Open/Close – 05 May / 07 May, 2026 |
| Price Band (Rs.) 95 – 100 | Issue Size (Rs.) ~ 3,405 mn |
| Face Value (Rs) – 10 | Lot Size (shares) 150 |
Bagmane Prime Office REIT was incorporated on 30 May 2025 and registered with SEBI on 15 July 2025 as a real estate investment trust. This registration is pursuant to the REIT Regulations and the REIT registration number is IN/REIT/25-26/0007.
Company own and manage premium Grade A+ business parks in the world’s best-performing micro-markets. Their portfolio spans 20.3 mn sq ft of total area and 19.6 mn sq ft of leasable space. As of Q3FY26, 98.8 pct of their space will be committed to occupancy, making it the highest among Indian office REITs post-listing.
Their tenant roster includes marquee foreign-headquartered multinational tenants such as Google, Amazon, a leading technology company, and Nvidia, who rank among the largest companies globally in terms of market capitalization as of Q3FY26.
Out of the total proceeds of Rs. 34,050 mn from the offer, ~Rs. 14,200 mn would go towards Acquisition by BDPL of Luxor at Bagmane Capital Tech Park, ~Rs. 8,200 mn would go towards Part funding of acquisition by BDPL of 93.00 pct of the issued and paid-up equity share capital of BRPL and ~Rs. 1,500 mn would go towards general corporate purposes. ~Rs. 10,150 mn would go to shareholders selling their stake.
Key Highlights
- India’s office market today offers a diverse range of opportunities for companies aiming to expand. Its strong economy, plentiful cost-effective talent pool and favourable business climate make it an attractive destination for both domestic and international firms seeking to establish a presence. Looking ahead, the Grade A stock is projected to grow at a CAGR of approximately 6.6 pct between CY26 and CY28F, reaching 1,100 mn sq ft.
- Company is backed by their sponsor, the Bagmane Group, Bengaluru’s largest and one of India’s leading pure-play Grade A+ office owners and developers. As of Q3FY26, according to the JLL Report, the Bagmane Group has nearly three decades of experience in operating, developing, leasing, and managing large-format commercial real estate in Bengaluru with a pipeline across Bengaluru, Delhi, and Chennai.
- The Bagmane Group has delivered over 29.7 mn sq ft across seven commercial real estate projects in Bengaluru. This represents approximately 12.8 pct of Bengaluru’s total Grade A office stock as of Q3FY26. Additionally, another 6.5 mn sq ft are under development.
- The portfolio has 16.6 mn sq ft of completed area with a 98.8 pct committed occupancy and a 7.4-year WALE as of Q3FY26. Strong growth has been demonstrated between FY23 and 9MFY26, with 7.2 mn sq ft of total leasing, of which a 15.5 pct avg. re-leasing spread was achieved on 5.3 mn sq ft of area re-leased, and 1.7 mn sq ft of newly completed area and 0.2 mn sq ft of vacant area were leased.
- Sales of the company has grown by 23.3 pct CAGR in over FY23-25 and EBITDA and Profit grew by 43.3 pct CAGR and 86.5 pct CAGR over same period. During FY25 the sales of the company jumped by 29.2 pct YoY to Rs. 20,016 mn. While EBITDA of the company grew by 49.2 pct YoY to Rs. 1,637 mn and EBITDA margin expanded by 110 bps to 8.18 pct YoY in FY25. During FY25, the company reported profit of Rs. 608 mn, which grew 100 pct YoY.
Key Risk
- All portfolio assets are entirely concentrated in Bengaluru. Any slowdown or adverse developments in the Bengaluru commercial real estate market may adversely affect occupancy levels, rentals and business performance.
- It has a concentrated tenant base, with the top 10 tenants contributing 63 pct of Gross Contracted Rentals and a dominant exposure to foreign MNCs (98.7 pct) and GCCs (88.5 pct) for the Q3FY26. Any downsizing or early exit by these tenants could adversely impact rental income and cash flows.
- The tenant mix is largely exposed to technology‑led sectors, including IT, GCCs, semiconductors and e‑commerce. Any prolonged slowdown in these sectors could impact leasing demand.
Financial Performance
| Financials (Rs mn) | FY23 | FY24 | FY25 | 9MFY26 |
| Revenue from operation | 19,790 | 22,050 | 23,710 | 19,430 |
| Other Income | 230 | 320 | 200 | 170 |
| Total Income | 20,030 | 22,370 | 23,910 | 19,600 |
| PAT | 7,590 | 8,090 | 8,970 | 8,290 |
| Cash flow from operation | 10,730 | 12,150 | 15,960 | 12,480 |
| Net worth | 12,950 | 12,300 | 15,860 | 26,830 |
| Net Debt | 32,310 | 37,270 | 35,190 | 27,320 |
| Adj. D/E (x) | 2.7 | 3.1 | 2.4 | 1.1 |
Peer Comparison
| Particulars | Bagmane | Embassy | Mindspace | Brookfield | Knowledge |
| Total Leasable Area (mn sq ft) | 19.6 | 51.6 | 38.3 | 37.0 | 46.4 |
| Completed Leasable Area (mn sq ft) | 16.6 | 41.1 | 31.2 | 32.4 | 37.2 |
| Committed Occupancy (%) | 98.8 | 90.0 | 92.8 | 92.0 | 92.0 |
| Net Operating Income (Rs mn – FY25) | 20,840 | 32,840 | 20,620 | 19,530 | 34,320 |
| WALE (yrs) | 7.4 | 8.4 | 7.3 | 6.5 | 7.9 |
Estimated Payout and Yield to the Unitholders
| Particulars (Rs mn) | FY27 | FY28 | FY29 | FY30 |
| Projected NDCF | 20,960 | 21,860 | 23,480 | 25,340 |
| NDCF to be distributed to the Unitholders | 20,956 | 21,855 | 23,480 | 25,337 |
| Total number of units (mn) | 3,400 | 3,400 | 3,400 | 3,400 |
| Likely Payout to the Unitholders (Rs/unit) | 6.2 | 6.4 | 6.9 | 7.5 |
| Payout Yield at Upper Price Band of Rs 100/unit | 6.2% | 6.4% | 6.9% | 7.5% |
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a Financial Advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
