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Keystone Realtors, a real estate firm which sells properties under the brand name ‘Rustomjee’, plans to raise Rs 635 crore through an initial public offering. The subscription for the IPO will be open from November 14 to November 16, 2022. The price band is fixed at Rs 514-541 per equity share.
The IPO comprises of fresh issue of shares worth Rs 560 crore and offer for sale of shares worth Rs 75 crore. The face value is set at Rs 10 per share.
Company Summary
Keystone Realtors Limited is one of the prominent real estate developers in the micro markets. Keystone has 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.
The company 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 our Rustomjee brand at the end of the first quarter of the current fiscal.
As of June 30, 2022, we have developed 20.22 million square feet of high-value and affordable residential buildings, premium gated estates, townships, corporate parks, retail spaces, schools, iconic landmarks and various other real estate projects.
The company has a business model which focuses on 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 parcels. With this business model, the company minimises the upfront capital expenditure compared to direct acquisition of land parcels, which ensures that our capital allocation is balanced and calibrated, allowing us to generate revenue with lower initial investments.
Keystone Realtors has funding arrangements with leading financial institutions such as with L&T Finance, ICICI Bank, Standard Chartered Bank and Indian Bank.
Company Financials
Period | 3MFY23 | FY22 | FY21 | FY20 |
Total Assets | 3910.15 | 3876.84 | 3654.1 | 4415.31 |
Total Revenue | 176 | 1302.97 | 1177.27 | 1268.6 |
Profit After Tax | 4.22 | 135.83 | 231.82 | 14.49 |
Total Borrowing | 1468.83 | 1557.96 | 2513.9 | 1220.26 |
Adjusted EBITDA | 115.39 | 2107.43 | 1494.5 | 193.42 |
Adjusted EBITDA margin | 6.85% | 16.60% | 17.61% | 15.97% |
Net Debt / Equity Ratio | 1.1 | 1.38 | 1.19 | 7.7 |
Company Strengths
- Keystone Realtors is a well-established and customer-centric brand in the Mumbai Metropolitan Region (MMR).
- It is one of the leading residential real estate development companies in MMR with a well-diversified portfolio and strong order book.
- The company follows an asset-light and scalable model resulting in profitability and stable financial performance.
- The company has demonstrated project execution capabilities with in-house functional expertise.
- The realtor has a technology focused operations resulting in operational efficiency and enhanced customer experiences.
- It has robust stakeholder management capabilities across the spectrum of project development and strong focus on sustainable development
- The company is led by experienced promoters and qualified senior management providing strategic direction and implementation of the company’s growth plans.
Purpose of the IPO
- The company plans to utilise the net proceeds from fresh issue of shares for repayment or prepayment, in full or part, of certain borrowings availed by the company and/or certain of their subsidiaries totalling up to Rs 341.60 crore
- It also plans to use the net proceeds from fresh issue of shares for funding acquisition of future real estate projects and general corporate purposes.
- The net proceeds received from the Offer for Sale will go to the selling shareholders.
- The company expects to achieve the benefits of listing on the stock exchanges including enhancement of their brand name and creation of a public market for its shares in India.
Company Promoters
Boman Rustom Irani, Percy Sorabji Chowdhry and Chandresh Dinesh Mehta are the promoters of the company promoters.
IPO Details
IPO Subscription Opening Date | November 14, 2022 |
IPO Subscription Closing Date | November 16, 2022 |
Face Value | Rs 10 per share |
Price Band | Rs 514 to Rs 541 per share |
Lot Size | 27 shares |
Issue Size | 1,17,37,523 shares aggregating up to Rs 635 crore |
Fresh Issue | 1,03,51,201 shares totalling up to Rs 560 crore |
Offer for Sale | 13,86,322 shares aggregating up to Rs 75 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 27 | Rs 14,607 |
Retail (Maximum) | 13 | 351 | Rs 189,891 |
Small HNI (Minimum) | 14 | 378 | Rs 2,04,498 |
Large HNI (Minimum) | 69 | 1,863 | Rs 10,07,883 |
Allotment Date
Timeline | Date |
Allotment of shares | November 21, 2022 |
Initiation of refunds | November 22, 2022 |
Credit of shares to demat account | November 23, 2022 |
Listing date | November 24, 2022 |
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