Bagmane REIT IPO Day 2: 1.06x Subscribed, GMP 4%

Subscription crosses 1x on the second day

Bagmane Prime Office REIT’s initial public offering (IPO) moved into full subscription on Day 2 of bidding, signalling steady demand for the Bengaluru-focused office REIT. The issue opened for public subscription on Tuesday, May 5, 2026. Data on the National Stock Exchange (NSE) showed bids for 157.37 million shares against 147.92 million shares on offer. That translated into an overall subscription of 1.06 times.

The Day 2 milestone matters because REIT issues can see large institutional participation closer to the end of the bidding window. The subscription number also sets a reference point against other trackers that publish intra-day category updates. Some subscription snapshots in the broader market commentary indicated different overall figures (such as 0.92x at a point in time), reflecting timing differences in updates. The NSE figure cited above represents the fully-subscribed position highlighted for Day 2.

Grey market premium (GMP) points to modest listing expectations

Unofficial grey market activity suggested a limited premium ahead of listing. Sources tracking grey market trades indicated the unlisted units were changing hands around ₹104.5 per unit. That implies a grey market premium (GMP) of about ₹4.5, or roughly 4.5%, over the upper end of the price band.

Other updates around the same period put the GMP in the ₹4 to ₹4.5 range. Based on the upper price band of ₹100, that implies an estimated listing level around ₹104 to ₹104.5, if grey market pricing holds. GMP is not an official indicator and can change quickly before listing.

Price band, issue size, and structure

Bagmane Prime Office REIT is looking to raise ₹3,405 crore in total. The issue is priced in a range of ₹95 to ₹100 per unit. The offer combines a fresh issue and an offer for sale (OFS) by existing unitholders.

The fresh issue component is up to ₹2,390 crore through 239 million units. The OFS is ₹1,015 crore through 101.5 million units. The structure is important for investors because the fresh issue increases capital within the REIT, while OFS proceeds go to selling unitholders.

Anchor book and pre-IPO placement signal institutional demand

Ahead of the IPO, Bagmane Prime Office REIT raised ₹1,150 crore from anchor investors. The anchor allotment involved 114.9 million units at ₹100, the upper end of the price band.

The anchor list included domestic institutions such as SBI Life Insurance Company, UTI Mutual Fund, Kotak Mahindra Mutual Fund, WhiteOak Capital Mutual Fund, Quant Mutual Fund, and Max Life Insurance Company. Separately, the REIT had also raised ₹1,360 crore through a pre-IPO placement via a primary issuance before the anchor round, as reported in the provided details. These capital-raising steps reduced the quantum left for the main book, and they also served as a read on institutional appetite.

Key dates, lot size, and listing plan

The IPO opened on May 5, 2026 and is scheduled to close on May 7, 2026. The allotment date mentioned is May 12, 2026. The listing is tentatively scheduled for May 15, 2026 on both the BSE and NSE.

The lot size is 150 units. At the upper price band of ₹100, the minimum application size works out to ₹15,000. Investors typically track these dates closely because REIT units can see price discovery influenced by both yield expectations and broader market risk appetite.

What the REIT owns and where it is concentrated

Bagmane Prime Office REIT is described as a Bengaluru-based office REIT sponsored by Bagmane Realty and Infrastructure LLP, part of the Bagmane Group. The trust owns and manages six Grade A plus business parks. The portfolio size cited is 20.3 million square feet.

As of December 31, 2025, the committed occupancy was stated at 98.8%. The tenant list mentioned includes global technology companies such as Google, Amazon, and Nvidia. While these details support the “quality of cash flows” narrative often used for office REITs, investors also evaluate concentration risk because the portfolio is Bengaluru-focused.

Yield guidance mentioned for FY27 and FY30

Based on the upper price band, the REIT was expected to deliver a payout yield of around 6.2% in FY27. The same set of details suggested this could rise to 7.5% by FY30.

Yield expectations are central to how REIT units get priced in the market, especially when compared with bond yields and other income products. These figures are projections in the IPO commentary and not a guarantee of future distributions.

Who is running the issue

KFin Technologies is the registrar for the issue. The book-running lead managers listed include JM Financial, Kotak Mahindra Capital Company, Axis Capital, SBI Capital Markets, 360ONE WAM, and HDFC Bank.

The syndicate and registrar details matter mainly for process efficiency and investor servicing, including allotment status updates. Investors typically use the registrar portal and exchange websites to check allotment after the finalisation date.

Snapshot table: subscription, GMP, and timetable

Market impact and why investors are watching this REIT

The Day 2 full subscription suggests demand has kept pace with supply despite the issue size. At the same time, the grey market premium of roughly 4% to 4.5% points to measured listing expectations rather than a sharp debut.

For income-focused investors, the stated payout yield range (around 6.2% in FY27 and up to 7.5% by FY30, based on the upper band) is likely to be a key screening point. For others, the focus is on asset concentration and how a Bengaluru-only office portfolio behaves through cycles. The IPO is also positioned as a milestone because Bagmane Prime Office REIT is set to become India’s sixth listed REIT, joining names such as Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust.

Conclusion

Bagmane Prime Office REIT’s IPO reached full subscription on Day 2 as per NSE data, while grey market pricing indicated a modest premium over the issue price. The issue remains open until May 7, 2026, with allotment expected on May 12 and a tentative listing on May 15 on BSE and NSE. Investors are likely to keep tracking category participation, GMP changes, and final subscription numbers as bidding heads into the closing day.