Rustomjee Group firm Keystone Realtors’ IPO opens: 10 key things to know

Mumbai-primarily based totally realty organization Keystone Realtors’ preliminary public offering (IPO) opened for subscription on November 14. The corporation sells residences below the brand ‘Rustomjee’.

According to reports, the realtor instructions a marketplace percentage of 28 percentage in Khar, 23 percentage marketplace in Juhu, eleven percentage in Bandra East, 14 percentage in Virar, three percentage in Thane, and five percentage in Bhandup in phrases of absorption (in units) from 2017 to 2021.

Here are 10 key matters to realize approximately the problem:

1. IPO and allotment dates

The corporation is trying to increase Rs 635 crore via the general public problem with the intention to near on November 16. The tentative date for the premise of allotment is November 21.

2. Price band

The fee band has been constant at Rs 514-541 a percentage.

     3. Offer details

The provide incorporates a sparkling issuance of stocks really well worth Rs 560 crore and a suggestion for sale (OFS) of Rs seventy five crore through promoting shareholders.

As a part of the OFS, promoter Boman Rustom Irani will promote stocks really well worth as much as Rs 37.five crore. Shares really well worth Rs 18.seventy five crore every can be offloaded through Percy Sorabji Chowdhry and Chandresh Dinesh Mehta.

4. Objectives of the problem

As according to the pink herring prospectus (RHP), the corporation will utilise the internet proceeds toward investment the repayment/prepayment of borrowings to the music of Rs 341.6 crore. The proceeds can also be used to fund the purchase of actual property initiatives and for standard company purposes.

      5. Lot size

Retail traders can bid for no less than 27 stocks and multiples thereof. The minimal funding for a retail investor works out to Rs 14,607 on the higher quit of the fee band for 31 stocks.

6. Company profile and  industry

Founded in 1995, Keystone Realtors is one of the distinguished actual property builders in Mumbai. As of March 31, 2022, the corporation had 32 finished initiatives and has 12 ongoing initiatives and 19 impending initiatives throughout the Mumbai Metropolitan Region (MMR) that consists of a complete variety of initiatives below the affordable, mid and mass, aspirational, top class and incredible top class categories.

7. Financials

For Q1FY23, the corporation’s consolidated sales stood at Rs 168.five crore and internet earnings got here in at Rs 4.22 crore. In FY22, general sales became Rs 1,269 crore with a internet earnings of Rs one hundred thirty five crore.

8. Strengths and concerns

The corporation specializes in coming into joint improvement agreements and re-improvement agreements with landowners or builders, which calls for decrease in advance capital expenditure than the direct acquisition of land parcels. This is a key strength, consistent with experts.

A key problem is a massive boom in prices, taxes and levies or a put off withinside the deliver of creation substances that might adversely have an effect on the predicted creation cost. “Shortage of land for improvement withinside the MMR can also effect the enterprise prospects,” HDFC Securities stated in a note.

9. Key control personnel

Chairman and dealing with director Irani is a first-era actual property developer and entrepreneur with extra than 26 years of enjoy withinside the actual property industry. Mehta, who’s the corporation’s director, is in price of re-improvement and has massive enjoy in engineering, creation and era field. Chowdhry heads sales, advertising and human aid functions.

10. Listing date and Grey Market Premium

The tentative list date is November 24. Shares of Keystone Realtors have now no longer commenced buying and selling withinside the gray marketplace yet, so the GMP is nil as of now, stated a marketplace observer.