hBits gets Sebi licence to launch SM-REIT; plans to raise up to Rs 500 cr via IPO

hBits, which facilitates fractional investment in commercial real estate, has received a licence from markets regulator Sebi to launch its Small & Medium Real Estate Investment Trust (SM-REIT) public issue and it plans to raise up to Rs 500 crore. In a statement on Wednesday, hBits said it plans to launch the maiden SM-REIT IPO (Initial Public Offer) by June 2025. The size of the IPO is estimated at Rs 400-500 crore.

Over the next few weeks, hBits will also migrate its existing portfolio of premium commercial properties into the SM-REIT structure.

The SM REIT structure, governed by Sebi, is expected to significantly enhance transparency, compliance, and investor confidence in the emerging asset class of fractional commercial real estate ownership, hBits said.

The platform is actively looking to acquire new premium commercial properties across the top 10 cities to achieve Assets Under Management (AUM) of Rs 2,000 crore by March 2026.

hBits has a portfolio of 16 commercial assets. The company recently raised Rs 40 crore in its Series A funding round from Capricon Realty Pvt Ltd, part of the Thackersey Group.

“India’s commercial real estate sector has witnessed strong and consistent growth, especially in office spaces. With Sebi’s SM REIT regulations now in place, the path is clear to build a transparent, structured, and investor-friendly platform for fractional ownership in commercial real estate,” Shiv Parekh, Founder & CEO of hBits, said. hBits’ upcoming SM-REIT will offer investors the benefits of regular rental income, potential capital appreciation, and enhanced liquidity through secondary market mechanisms, he added.