The name Rustomjee is a very well-known name in the real estate industry in MMR (Mumbai Metropolitan Region) with multiple properties under the brand name ‘Rustomjee’ across Mumbai. This brand belongs to ‘Keystone Realtors Limited.
Keystone Realtors Ltd IPO was open from 14th to 16th November 2022. The IPO was subscribed 2.01 times. The allotment is expected today, Nov 21.
Here are all the important details of Keystone Realtors Limited IPO, including investment price band, allotment date, GMP, benefits and risks of investing in this IPO, and more.
The various details of the Keystone Realtors Limited IPO are as under.
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 14th November 2022 |
| IPO Closing Date | 16th November 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs.10 per share |
| IPO Price Band | Rs.514 – Rs.541 per share |
| IPO Size | Rs.635 crores (1,17,37,523 shares) |
| Offer For Sale | Rs.75 crores (13,86,322 shares) |
| Fresh Issue | Rs.560 crores (5,69,23,077 shares) |
The important dates for the Keystone Realtors Limited IPO are highlighted below.
| Event | Date |
| Opening date | 14th November 2022 |
| Closing Date | 17th November 2022 |
| Allotment date | 21st November 2022 |
| Refund Date | 22nd November 2022 |
| Share Credit Date | 23rd November 2022 |
| Listing Date | 24th November 2022 |
The subscription for shares of Keystone Realtors Limited IPO can be done in lots by different investor categories. The details of the lot sizes for this IPO are mentioned below.
| Category | Details |
| Investment in lots (for retail investors) | Minimum – 1 lot, Maximum – 13 lots |
| Shares | Minimum – 27, Maximum – 351 |
| Investment amount | Minimum – Rs. 14,607, Maximum – Rs. 1,89,891 |
The categories of eligible investors and their share in the IPO are
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
This IPO is majorly in the form of Fresh Issue and partly as an Offer for Sale. The key objectives of the IPO are stated below.
The company has some major real estate projects under its brand name ‘Rustomjee’ in India, primarily located in MMR (Mumbai Metropolitan Region). To date, Keystone Realtors have completed 280 buildings and delivered more than 20 million sq. ft of real estate space. They have 12 ongoing projects and another 21 upcoming projects in MMR. These spaces range from affordable and mass projects to premium properties like townships, corporate parks schools, landmark real estate projects, etc.
The company has a sound business model of entering into joint development agreements or redevelopment agreements. These agreements are with the societies, landowners, or developers. The company has also made a name in slum rehabilitation projects where they have the benefit of lower upfront capital investment as compared to the direct acquisition of a land parcel. Their business model also provides integrated business development right from the stage of scouting the land for development, conceptualizing the property, its execution, construction as well as marketing and end sales.
The core financials of the company are tabled below.
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 3,877 | 1,269 | 136 | 13.96 | 13.96 | 14.97% |
| Mar-2021 | 3,654 | 849 | 232 | 31.04 | 31.04 | 38.77% |
| Mar-2020 | 4,415 | 1,211 | 14 | 2.20 | 2.20 | 5.14% |
Some of the key strengths of Keystone Realtors Ltd are:
| Category | Details |
| Business model and financials | Follows an asset-light scalable business model. Has stable financials and strong brand name with the ability to command over 50% price premium |
| Future prospects | Many ongoing as well as upcoming projects in MMR, MMR micro-markets and ability to garner premium pricing in such markets. |
| Management | Experienced promoters and skilled senior management. Good corporate governance practices. Capable management with the ability to handle project development on end-to-end basis. |
Here are some of the risks that investors of Keystone Realtors Ltd IPO should know:
| Category | Details |
| Business viability and profitability | Risk of a shortage of available land for development in MMR or an increase in the cost of such land. Being a capital-intensive business, its profitability can be severely hit due to increased expenses Unsecured loans availed by the business have to be repaid when recalled |
| Competition | Extreme competition in the real estate industry from national and regional players |
| Industry outlook | The real estate industry has seen many downturns in the recent past and the viability if the business is dependent on the performance of the industry as a whole. |
As of November 18, 2022, the grey market premium for the shares of Keystone Realtors Limited was Rs. -2 as per market observers.
The company is a strong name in MMR with a proven track record. The financials saw a decrease in revenues and net profits in FY 2021 but have received to a good extent in FY 2022. The IPO seems to be overpriced as compared to its current financials. However, given the positive outlook of the company due to the backing of many ongoing and upcoming projects, the IPO can be a good addition from the mid-term to long-term investment perspective.
Investors can invest in this IPO through the Fisdom app.
The promoters of Keystone Realtors Limited who are part of the Offer For Sale are Mr. Boman Rustom Irani, Mr. Percy Sorabji Chowdhry, and Mr. Chandresh Dinesh Mehta.
The size of the Keystone Realtors Limited IPO is Rs. 635 crores.
The eligible Keystone Realtors Limited IPO are Qualified Institutional Buyers (QIB) up to 50% of the IPOI, Non-Institutional Investors (NII) up to 10%, and Retail Investors having the balance 35% of the IPO.
The price band for Keystone Realtors Limited IPO is Rs. 514 to Rs. 541.
The listing date for Keystone Realtors Limited IPO is 24th November 2022 when it will be listed on both NSE and BSE.
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