Rustomjee Group’s Keystone Realtors has filed a draught red herring prospectus with capital market regulator SEBI in order to raise Rs 850 crore through an initial public offering (IPO). The offering comprises of a fresh issue of equity shares worth up to Rs 700 crore and a promoters’ offer-for-sale (OFS) of Rs 150 crore. The OFS consists of Boman Rustom Irani selling equity shares worth up to Rs 75 crore and Percy Sorabji Chowdhry and Chandresh Dinesh Mehta selling equities for Rs 37.5 crore apiece.
Keystone Realtors intends to use the net profits to pay down debt, fund the acquisition of future real estate projects, and for general corporate purposes. Axis Capital and Credit Suisse Securities (India) Pvt Ltd are the issue’s book running lead managers. Link Intime India will be the issue’s registrar. Keystone Realtors will join the ranks of Macrotech Developers, Godrej Properties, Oberoi Realty, and Sunteck Realty if the stocks are successfully listed on the BSE and NSE. For the nine months ending December 31st, the average return on net worth was 10.94, while the average industry P/E ratio was 428.93x.
According to the company’s DRHP, structural developments like as RERA and GST have helped the sector gain market maturity and trust. According to Anarock, Keystones Realtors has a market share of 28 percent in Khar, 23 percent in Juhu, 11 percent in Bandra East, 14 percent in Virar, 3 percent in Thane, and 5 percent in Bhandup in terms of absorption (in units) from 2017 to 2021. Lipalton Pte. Ltd. (a wholly-owned subsidiary of Keppel Land Limited) is a strategic investor in Rustomjee Urbania, an integrated township in Thane.
In Mumbai’s Metropolitan Region (MMR), Keystone Realtors has completed 32 projects, 12 are in progress, and 19 are in the pipeline. These include projects in the affordable, mid and mass, aspirational, premium, and super-premium categories.
In addition, as of March 2022, the Mumbai-based real estate developer had created 20.05 million square feet of high-value and inexpensive residential complexes, premium gated estates, townships, corporate parks, retail spaces, schools, iconic landmarks, and many other real estate projects.