Blackstone is preparing to sell up to 25.03% of the units of Knowledge Realty Trust (KRT) through an offer for sale valued at approximately Rs 11,988 crore, according to a report by the Economic Times.

The stake sale is intended to help the trust meet regulatory requirements on public unitholding. Under Indian securities regulations, listed entities—including REITs—are required to maintain a minimum level of public shareholding, which for REITs is set at 25% under Securities and Exchange Board of India (SEBI) rules. The offer for sale is structured to bring KRT into compliance with those norms.

The transaction has been structured in two parts: a base offer of units plus an oversubscription option that allows for the sale of additional units if demand supports it. The sale will be executed over two trading days on both the BSE and the National Stock Exchange (NSE).

Blackstone and its related entities currently hold a significant stake in the trust. Knowledge Realty Trust is a real estate investment trust (REIT) backed by Blackstone and listed on Indian exchanges, with a portfolio concentrated in office real estate. The trust follows other Blackstone-backed Indian listings: the firm is also a sponsor of Embassy REIT, India's first listed REIT, and has been among the most active institutional investors in Indian commercial real estate.

The offer for sale mechanism, commonly used by large shareholders in Indian markets, allows existing holders to divest stakes through the exchange infrastructure while giving public investors an opportunity to acquire the units. For KRT, the sale marks a step toward a broader public float, which typically improves liquidity and index eligibility for listed units over time.

Source: Economic Times Markets