Knowledge Realty Trust OFS: ₹11,988 crore sale in 2026

What the sponsor OFS is and why it matters

Knowledge Realty Trust has informed stock exchanges that its sponsor-group entities plan to sell up to 111 crore units through an offer for sale (OFS). The proposed sale represents 25.03% of the REIT’s unit capital if the oversubscription option is fully exercised. The move is aimed at meeting the minimum public unitholding requirement under the SEBI Real Estate Investment Trusts Regulations, 2014, as amended. The OFS is scheduled across two trading days, starting with non-retail investors and then opening to retail investors. The floor price for the offer has been set at ₹108 per unit, and the total size at the floor price is estimated at about ₹11,988 crore. The OFS will be conducted through a separate window on the BSE and NSE, as outlined in the exchange filing.

Who is selling and how much is on offer

According to the BSE filing, the sellers are BREP Asia SG L&T Holding (NQ), BREP Asia SG DRPL Holding (NQ), BREP Asia II Indian Holding Co IV (NQ) and BREP Asia II Indian Holding Co VII (NQ). These entities are part of the sponsor group of the trust. The transaction has been structured with a base offer and an oversubscription option. The base offer comprises up to 74 crore units, which is 16.69% of the unit capital. An additional 37 crore units, or 8.34% of the unit capital, can be sold if the oversubscription option is exercised. If fully exercised, the combined offer size becomes 111 crore units, representing 25.03% of unit capital.

Floor price and offer value at the indicated price

The floor price has been set at ₹108 per unit. At this floor price, the base offer is valued at about ₹7,992 crore. If the oversubscription option is fully exercised, the overall OFS value at the floor price would be about ₹11,988 crore. Reuters also reported that the total stake that could be sold is valued at 119.88 billion rupees (about $1.26 billion) at the floor price. The filing indicates the sellers will inform stock exchanges after trading hours on T Day whether they intend to exercise the oversubscription option.

OFS schedule: who can bid and when

The OFS will open for non-retail investors on August 31, 2026 (T Day). The filing specifies the timing for non-retail bidding as 9:15 a.m. to 3:30 p.m. on the same day. Retail investors can participate on September 1, 2026 (T+1 Day). Non-retail investors who choose to carry forward their unallotted bids can also participate on September 1 for allocation in the unsubscribed portion of the retail category. The sale will take place through a separate designated OFS window on both the BSE and NSE.

Allocation rules and category reservations

The offer includes specific reservation and allocation conditions. A minimum of 10% of the offer units will be reserved for retail investors, subject to receiving valid bids. A minimum of 25% of the offer units will be reserved for mutual funds and insurance companies, subject to receipt of valid bids at or above the floor price. The filing also states that no single bidder, other than mutual funds and insurance companies, will be allocated more than 25% of the offer units. These conditions are intended to support broader distribution and meet the regulatory objective of minimum public unitholding.

SEBI minimum public unitholding requirement

The trust stated the OFS is being undertaken to achieve the minimum public unitholding requirement prescribed under SEBI REIT regulations. The exchange filing referred to Regulation 14(2A) of the SEBI (Real Estate Investment Trusts) Regulations, 2014, as amended. For listed REITs, sponsor holdings and public unitholding thresholds are monitored through such disclosures and periodic compliance actions. This OFS is positioned as a compliance-driven transaction rather than a capital raise by the trust.

Key intermediaries and brokers

IIFL Capital Services will act as the settlement broker for the OFS. The sellers’ brokers for the offer include Axis Capital, IIFL Capital Services, JM Financial Institutional Securities, Kotak Securities, 360 ONE Capital Market, 360 ONE Distribution Services, SBICAP Securities and Sunidhi Securities and Finance. The transaction will be executed via the OFS mechanism on stock exchanges, with bids routed through the OFS window as per exchange procedures.

Ownership context: current holding and sponsor background

As per the exchange filing referenced in the report, Blackstone and related entities currently hold 46.51% in Knowledge Realty Trust. Reuters described Blackstone as proposing to sell up to 25.03% of the REIT through the OFS route. The trust is backed by Blackstone and Indian real estate firm Sattva Group, according to the Reuters report included in the provided information. The broader implication is that sponsor-group holdings are being realigned to meet public unitholding norms while continuing to maintain a significant presence.

Portfolio snapshot and listing performance mentioned in reports

Reuters reported that Knowledge Realty Trust owns 29 assets across six cities and has a gross asset value of 674 billion rupees, as per its website. Separately, the provided trust material states gross asset value of ₹6,74,111 million as of March 31, 2026. Reuters also reported that the REIT listed in August 2025 and has gained about 10% since then. These data points provide context on the scale of the platform and the market performance reference cited in the report.

Summary table of the OFS structure and terms

What to watch next

The immediate next step is the first bidding day for non-retail investors on August 31, 2026, followed by the retail day on September 1, 2026. Investors will also watch for the post-market update on T Day regarding whether the oversubscription option will be exercised. The OFS structure, category reservations, and bidder allocation limits will determine how units are distributed across investor types. Any subsequent exchange disclosures around allotment and final sale size will confirm the extent to which the compliance objective is achieved through this transaction.