Keystone Realtors IPO

Last Updated: 16 November 2022 6:23 PM by rahul_raskar

Keystone Realty, prominent Mumbai-based real estate developer, is coming up with a Rs. 635 crore IPO which opens on 14TH November and closes on 16th November. The issue consists of a mixture of fresh issue of Rs. 560 crore and offers for sale (OFS) of Rs. 75 crores.
Promoters Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta will be participating in the offer for sale.
The lot size is 27 shares while the price band is fixed between Rs. 514 – Rs. 541 per share. The allotment of shares will be done by 21st November and the issue will list on the exchanges on 24th November.
Axis Capital and Credit Suisse Securities (India) are the book-running lead manager for the IPO.

Objective of Rustomjee IPO

The proceeds from the fresh issue will be utilised to 
•    repay certain borrowings availed by the company and subsidiaries
•    funding acquisitions of future real estate projects
•    general corporate purposes

Rustomjee IPO Video

Keystone Realtors is one of the prominent real estate developers (in terms of absorption in number of units) in the micro markets that it is present in. It commands a market share of 28% in Khar, 23% market in Juhu, 11% in Bandra East, 14% in Virar, 3% in Thane and 5% in Bhandup in terms of absorption (in units) from 2017 to 2021. As of June 30, 2022, it had 32 Completed Projects, 12 Ongoing Projects and 21 Forthcoming Projects across the Mumbai Metropolitan Region (“MMR”) that includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium and super premium categories, all under its Rustomjee brand.

The company develops luxury projects which are environment friendly. For example, it uses solar panels in its projects to generate electricity for common areas to reduce reliance on non-renewable sources of energy. The business model allows the company to minimise the upfront capital expenditure compared to direct acquisition of land parcels, which ensures that the capital allocation is balanced and calibrated, allowing it to generate revenue with lower initial investments.

Keystone Realty plans 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 also plans to improve operational efficiency with technological innovation, trusted vendors, and stakeholder management.
Some of the notable projects include:

•    Rustomjee Elements, a large gated community in Upper Juhu, Mumbai; 

•    Rustomjee Paramount, a signature complex in Khar, Mumbai;

•    Rustomjee Seasons, 3.82 acres gated community in Bandra Annexe, Mumbai; 

•    Rustomjee Crown, a 5.75 acres land parcel for high-end development at Prabhadevi, South Mumbai, consisting of three high-rise towers

Check out our webstories on Keystone IPO