**Bagmane Developers Shortlists Banks for ₹5,000 Crore REIT Listing**
Bagmane Developers Pvt. Ltd, a real estate developer backed by Blackstone, has selected four investment banks to oversee its upcoming ₹5,000 crore office real estate investment trust (REIT) listing, which could be valued between ₹22,000 and ₹25,000 crore. This move aligns with a trend of real estate developers, both residential and commercial, seeking to raise funds through public markets amid increasing investor interest in REITs.
Sources familiar with the situation revealed that the shortlisted banks include Kotak Mahindra, Axis Capital, Citi, and JP Morgan. The company is aiming to raise between ₹4,500 and ₹5,000 crore from the initial public offering (IPO). Blackstone, which owns approximately 10% of Bagmane, is expected to divest a small portion of its stake during the IPO. The private equity firm acquired its stake in December 2024 for around $200-250 million, valuing the company at approximately ₹20,000 crore.
Bagmane Developers plans to submit its draft documents to the Securities and Exchange Board of India (SEBI) by the end of the current financial year, with a target listing date set for next year. Despite its low profile, the Bengaluru-based company is recognized as one of the largest commercial developers in India, boasting over 30 million square feet of operational office parks primarily in Bengaluru, along with significant ongoing construction projects.
The company is also expanding its presence beyond Bengaluru, recently acquiring a 124,000 square meter railway land parcel in Delhi’s Dwarka for ₹1,530 crore, intended for a mixed-use development. As the third Bengaluru developer to pursue a REIT listing, following Embassy Group and Sattva Group, Bagmane Developers is well-positioned to attract investor interest, bolstered by Blackstone’s involvement and its strong management team.
**FAQ**
*What is the significance of Bagmane Developers’ REIT listing?*
The REIT listing is significant as it reflects the growing trend of real estate developers tapping into public markets for funding, driven by increasing investor interest in REITs. It also positions Bagmane Developers as a key player in the commercial real estate sector, enhancing its credibility and growth potential.
