PremiumMumbai-based real estate developer, Keystone Realty will be launching its initial public offering (IPO) on November 14 to raise approximately ₹635 crore. The IPO is a mixture of fresh issues and offers for sale (OFS). Investors will be allowed to subscribe to the IPO till November 16. Meanwhile, the company will offer equity shares to anchor investors on November 11 ahead of the IPO.
Axis Capital and Credit Suisse Securities (India) are acting as the book-running lead managers (BRLM) for the IPO, while Link Intime India is the registrar of the offer.
The IPO includes a fresh issue of ₹560 crore and OFS of ₹75 crore. Promoters Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta will be participating in the offer for sale.
The equity shares to be offered under the IPO will have a face value of ₹10 each. Of the total IPO size, 50% will be reserved for qualified institutional buyers (QIBs), whereas 15% will be kept for non-institutional investors (NIIs) and the remaining 35% will be set aside for retail individual investors (RII).
The proceeds from the fresh issue will be utilised to repay certain borrowings availed by the company and subsidiaries. Also, a part of the proceeds will be used for funding acquisitions of future real estate projects and general corporate purposes. Meanwhile, the proceeds from OFS will be utilised by the promoters.
Keystone Realtors is one of the prominent real estate developers (in terms of absorption in a number of units) in the micro markets. As of June 30, 2022, the company has completed 32 projects, and currently has 12 ongoing projects while is packed with further 21 upcoming projects across the Mumbai Metropolitan Region.
By end of the June 2022 quarter, the company has 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 about 1,542 channel partners who present the Rustomjee portfolio to their customers and drive customers traffic to its projects.
Among its business strategies ahead, 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. Also, the company plans to improve operational efficiency with technological innovation, trusted vendors, and stakeholder management.