Keystone Realtors IPO Day 1: Mumbai-based realty firm Keystone Realtors will hit the capital market on Monday to raise Rs 635 crore through its Initial Public Offer (IPO). The Mumbai-based company now intends to raise Rs. 635 crores, according to the Red Herring Prospectus (RHP). The IPO’s size has decreased from its initial amount of Rs 850 crore. The Rustomjee Group company’s IPO consists of a fresh issuance for 560 crores. The range of the offer’s price has been set at Rs 514 to Rs 541 per share.
Keystone Realtors IPO: Price band
Keystone Realtors has fixed their band in the range of Rs 514-541 apiece. Axis Capital and Credit Suisse Securities (India) are the book running lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.
Keystone Realtors IPO: Anchor Investors
Through the anchor book, Keystone Realtors on November 11 garnered a total of Rs 190.5 crore. The realty developer said it has decided the allocation of 35.21 lakh equity shares to anchor investors at Rs 541 per share.
Keystone Realtors IPO: Category Allocation
The company has decided to allocate 50 per cent shares to the qualified institutional bidders (QIBs), whereas 15 per cent shares will be allocated to non-institutional buyers (NIIs). The remaining 35 per cent shares will be allocated to retail bidders. Retail investors can make a bid for a minimum of 27 equity shares and then its multiples thereof.
Keystone Realtors IPO: Issue Objectives
The net proceeds from the issue will be utilized towards repayment or prepayment of certain borrowings availed by the company and/or its subsidiaries, funding acquisition of future real estate projects and general corporate purposes.
Keystone Realtors IPO: Financials
In FY22, the company had reported a revenue of Rs 1,269.3 crore against Rs 848.7 crore in FY21. Profit in the last financial year stood at Rs 135.8 crore. In the June 2022 quarter, it reported a profit of Rs 4.22 crore with a revenue at Rs 168.5 crore.
Keystone Realtors IPO: Should you Invest?
“At higher price band, KRL is demanding an EV/TTM pre-sales multiple of 2.6x, which seems to be discount to peer average. Thus the issue seems to be attractively priced. However considering its 76.6 per cent sequential fall in pre-sales business (compared to 3 per cent average increase in the peer’s business), we assign a “Subscribe with Caution” rating for the issue,” said Choice Broking.
Founded in 1995, Keystone Realtors is one of the prominent real estate developers. As of March 31, 2022, they had 32 completed projects, 12 ongoing projects and 19 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 their Rustomjee brand.
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