Beneath the Bagmane REIT IPO

Akshara· Host0:00

[upbeat music] In today's episode, we'll break down two important stories. First, we'll talk about India's biggest office REIT being its narrowest bet, and then we'll talk about India's bittersweet conundrum. Welcome back to The Daily Brief by Zerodha, where we cut through the noise to help you understand what's actually happening in the most important stories from business and markets. I'm your host Akshara. Today is Tuesday, 5th March. Coming to the first story. So the Indian markets are about to see another major REIT IPO. Bagmane Prime Office REIT opens for subscription today, the 5th of May, and closes on the 7th. The entity plans to raise rupees 3,405 crore at a price band of rupees 95 to 100 per unit, sitting on a portfolio worth roughly rupees 40,000 crore. By size, that makes it the largest pure-play office REIT to ever list in India. If you're new to REITs or want a refresher on what they actually are and why they're different from buying a real estate stock, we covered all of that when Knowledge Realty Trust went public last August. The two issues are very different in substance, though. Knowledge Realty was a diversified bet with 29 assets across seven cities, deliberately spreading risk. Bagmane is the opposite. On paper, India's biggest pure-play office REIT sounds institutional and broad. But in reality, it's an exceptionally narrow bet. All of its revenue comes from just two corridors of a single city. Most of it