Keystone Realtors Ltd IPO
Keystone Realtors Ltd
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹541
Issue Price
Listing Price
₹555
Listing Price
Listing Gains
+₹14.00 (+2.59%)
Listing Gains
IPO Details
Bidding Dates
14 Nov - 16 Nov '22
Bidding Dates
Min. Investment
₹13,878
Min. Investment
Lot Size
27.00
Lot Size
Price Range
₹514 - ₹541
Price Range
Issue Size
603 Cr
Issue Size
Subscription Rate
- Retail Individual Investor0.53x
- Non-Institutional Investor3.03x
- Qualified Institutional Buyers3.84x
- Employees
About Company
Keystone Realtors is set to float its initial public offering (IPO) on November 14 to raise around Rs 635 crore. Keystone Realtors is a Rustomjee Group company, a prominent Mumbai-based real estate developer.
Incorporated in 1995, Keystone Realtors is engaged primarily in the business of real estate construction, development and other related activities in India. It has developed over 280 buildings and homes for over 14,000 families as of June 30, 2022.
The company had 32 completed projects, 12 ongoing projects and 21 forthcoming projects across the Mumbai Metropolitan Region (MMR). This includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium and super premium categories, all under the Rustomjee brand.
It has developed 20.22 million square feet of high-value and affordable residential buildings, premium gated estates, corporate parks, retail spaces, townships, schools, iconic landmarks and various other real estate projects.
Keystone Realtors IPO will open for public subscription on November 14 and close on November 16. The company has fixed the price band for the issue at Rs 514 to 541 per share. It plans to raise Rs 635 crore from the issue, which comprises fresh issuance of shares worth Rs 560 crore and an offer-for-sale (OFS) of shares worth Rs 75 crore by selling shareholders.
The company proposes to use the issue proceeds for repaying debts, and acquisition of future real estate projects, besides general corporate purposes.
Important Dates - Keystone Realtors IPO
| Application opens on | 14th November 2022 |
| Last date of application | 16th November 2022 |
| Date of Allotment | 21st Novemberber 2022 |
| Refund begins from | 22nd Novembber 2022 |
| Credit of shares to Demat | 23rd November 2022 |
| Listing date | 24th November 2022 |
Why should you invest in Keystone Realtors Ltd IPO?
Keystone Realtors, which operates under the Rustomjee brand, is a prominent player in the real estate market of MMR. The company operates an asset-light model. Its growth prospects look strong with projects on hand, a well-informed cash surplus and progress in the realty sector.
Keystone Realtors Ltd IPO Noteworthy Highlights
Here are some of the key details and information about Keystone Realtors IPO that investors should know before investing:
- Keystone Realtors, as part of the business model, is entering into joint development agreements, redevelopment agreements with landowners or developers or societies, and slum rehabilitation projects, which requires lower upfront capital investment compared to direct acquisition of land parcel.
- It has adopted an integrated real estate development model for every stage of the property development life cycle, commencing from business development, which involves the identification of land parcels and the conceptualization of the development, to execution, comprising planning, designing and overseeing the construction activities, marketing and sales.
- Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta are the promoters of Keystone Realtors.
- The total promoter shareholding in the company is 96.71%. It will drop to 87.92% after the IPO.
- Keystone Realtors IPO lot size is 27 shares, and a retail-individual investor can apply for up to 13 lots, making the total investment of 351 shares or Rs 189,891.
- Axis Capital and Credit Suisse Securities (India) are the joint Book Running Lead Managers (BRLMs) to the issue.
- The company has reserved 50% of the offer for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors.
Financial Snapshot - Keystone Realtors IPO
Check out the financial performance of Keystone Realtors for recent years:
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2020 | Rs 4,415.31 crore | Rs 1,268.6 crore | Rs 14.49 crore |
| March 2021 | Rs 3,654.1 crore | Rs 1,177.27 crore | Rs 231.82 crore |
| March 2022 | Rs 3,876.84 crore | Rs 1,302.97 crore | Rs 135.83 crore |
Keystone Realtors Ltd IPO - SWOT Analysis
Strengths
Keystone Realtors is a well-established customer-centric real estate brand in the Mumbai Metropolitan Region with a well-diversified portfolio and strong pipeline. Its asset-light and scalable model results in profitability and stable financial performance. Its technology-focused operations result in operational efficiency and enhance customer experiences.
Weaknesses
The company’s real estate development activities are principally focused within the MMR, which may be subject to market conditions and regulatory developments that are different from other real estate markets within India. Its business is capital intensive and requires significant expenditure for real estate project development and is therefore dependent on the availability of real estate financing, which may not be available on terms acceptable to the company in a timely manner or at all.
Opportunities
The company intends to leverage its strength and experience in redevelopment, focus on such opportunities in Mumbai’s city centre locations and major suburbs, and continue to expand its business by following a disciplined approach with an asset-light model. It intends to acquire future real estate projects and grow its real estate portfolio. It has increased focus on key growth areas in the proximity of upcoming infrastructure projects and relaxation of Coastal Regulation Zone norms.
Threats
Keystone Realtors faces stiff competition from various national and regional real estate developers. Any fluctuations in market conditions in the MMR, significant increases in prices or shortage of or delay or disruption in the supply of construction materials and equipment poses a threat to the company’s business operations. Moreover, an increase in the price of land and/or shortages of land, an increase in stamp duties and a change in the rate of property taxes could adversely impact the business and growth plans of the company.
How to apply for Keystone Realtors Ltd IPO?
You can apply for the Keystone Realtors Ltd IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Keystone Realtors Ltd click here.
2. If you don't have a TradeSmart Account? Sign up.
