The development comes on the back of a wave of real estate developers, both residential and commercial office, tapping the public markets to raise funds amidst growing investor interest in Reits.
“The bankers were asked to make pitches last month for the IPO,” the first person cited above said on condition of anonymity as the discussions are private. This person added that four investment banks have been shortlisted–Kotak Mahindra, Axis Capital, Citi and JP Morgan.
According to the second person, the Bengaluru-based company is looking to raise ₹4,500-5,000 crore from the IPO. “Blackstone, which holds around 10% stake in the company, is likely to sell a small percentage during the IPO,” said the second person.
Global PE firm Blackstone picked up a 10% stake in the company in December 2024 for around $200-250 million, valuing it around $2-2.5 billion or ₹20,000 crore.
Bagmane Developers is targeting filing its draft documents with the market regulator Securities and Exchange Board of India (Sebi) by the fourth quarter of the current financial year and will likely target listing sometime next year, these people said.
Spokespersons for Bagmane Developers Pvt Ltd, Axis Capital and Kotak Mahindra Capital didn’t respond to queries. Blackstone, Citi and JP Morgan spokespersons declined to comment.
“Bagmane Developers has always maintained a low profile but is comparable to the largest commercial developers in the country,” said a third person familiar with the plans, who also didn’t wish to be named, pointing to over 30 million sq. ft of operational office parks owned by the company mainly in Bengaluru, plus sizeable space under construction.
“Blackstone, as a minority partner, will add further credibility to investors, but Bagmane has a strong management team and is well-equipped to lead the Reit,” this person added.
The four-decade-old Bagmane will be the third developer from Bengaluru, after Embassy Group and Sattva Group, to go for an Reit listing. It is known for some of the largest business parks in Bengaluru, and has built its portfolio with a focus on its home market. However, it is slowly expanding its real estate footprint in other cities as well.
Recently, it acquired a 124,000 sq. metre railway land parcel in Delhi’s Dwarka for ₹1,530 crore for a mixed-use development project. It is also exploring acquisition opportunities in other cities, the third person cited above added.
Shobhit Agarwal, managing director and chief executive at Anarock Capital Advisors, says Reits are an established and proven product in the stock market now.
“Bagmane has one of the largest office portfolios in the country today, and Blackstone has single-handedly institutionalised India’s commercial real estate market,” Agarwal said. “They created the Reit product in India and have led the way with their participation in all the Reit IPOs so far, except Brookfield India Reit.”
Reits debuted in the country in 2019, with Embassy Office Parks REIT, sponsored by Embassy Group and Blackstone. Currently, there are four listed Reits in India—Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT in the commercial office space, and Nexus Select Trust, the only listed retail Reit.
The four Reits collectively operate more than 128.9 million sq. feet of Grade A office and retail real estate across India’s key urban centres.
Meanwhile, another Reit sponsored by Blackstone and Sattva Group, Knowledge Realty Trust, launched its IPO on Tuesday.It has a 46-million sq. ft portfolio.
As per the Indian REITs Association (IRA), an industry body, the country’s Reit market manages gross assets under management (AUM) exceeding ₹1.63 trillion, with a combined market capitalisation of more than ₹98,000 crore as of 14 May 2025.
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