Knowledge Realty Trust has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
Knowledge Realty Trust has allotted 1,60,000 secured, listed, rated, redeemable Non-Convertible Debentures (NCDs) with a face value of ₹1,00,000 each, aggregating to ₹1,600 Crores, on a private placement basis. The NCDs carry a coupon rate of 7.20% per annum and have a tenure of 3 years, maturing on 26th September 2028. The NCDs are proposed to be listed on BSE and are secured by a first-ranking pari passu charge on identified bank accounts, receivables, and immovable properties (located in Hyderabad) of Devbhumi Realtors Private Limited (DRPL), the SPV, along with a corporate guarantee from DRPL. Major allottees include Kotak Mutual Fund schemes (~₹600 Cr), Aditya Birla Sun Life Mutual Fund schemes (~₹555 Cr), Barclays Merchant Bank Singapore Limited (₹170 Cr), and ICICI Prudential Mutual Fund schemes (~₹150 Cr). The Board approved the allotment at its meeting held on 26th September 2025.
This is a significant debt raise of ₹1,600 Crores at 7.20% coupon, which will strengthen the Trust's capital structure for its commercial real estate operations. While it adds to the leverage, the strong institutional participation from marquee mutual funds and a foreign bank signals investor confidence, though shareholders should monitor the interest servicing and asset cover given the 3-year bullet maturity.