Mumbai: Keystone Realtors of Rustomjee brand will launch its Initial Public Offer (IPO) and Offer for Sale (OFS) on November 14 to raise Rs 635 crore.
Of the Rs 635 crore that the developer intends to raise, Rs 560 crore will be through the fresh issue and the balance Rs 75 crore by way of OFS. The shareholders offloading part of their stake include the company’s Chairman & Managing Director Boman Irani up to Rs 37.5 crore, and Directors Percy Chowdhry’s as well as Chandresh Mehta’s up to Rs 18.75 crore each.
Earlier, IPO’s size was Rs 850 crore, which has been reduced to Rs 635 crore.
IPO opens on Nov 14
The issue will open on November 14 and close on November 16. The price band has been fixed at Rs 514 – 541 per share. There will be 27 shares in each lot, thus, investors can bid for a minimum of 27 shares and in multiples of 27. For retail investors, 35% of the offer has been reserved, another 15% for high-networth individuals and the balance 50% for qualified institutional buyers. The bidding for anchor investors will open on November 11. On November 24, the company’s equity shares will be listed on BSE and NSE.
The company plans to utilise the proceeds of the issue to repay debts, acquire real estate projects and for general corporate purposes. Its business is focused predominantly on residential real estate projects with over 90% of the revenues coming in from this segment.
According to the Red Herring Prospectus filed with the Securities and Exchange Board of India, the company’s debt-to-equity ratio stands at 1.62 as against the average of 0.53 of the listed peer group. From the proceeds, around Rs 341.6 crore will be used for debt repayment, which will help in improving its debt-to-equity ratio.
The developer has a presence only in the Mumbai Metropolitan Region market and intends to continue focusing on the same region.
As of the end of 2021-22, Keystone Realtors had completed 32 projects, has a dozen ongoing projects and plans to come up with 19 more in the MMR. Of these 19 projects, three would be in the Bandra, Juhu and Dombivali areas of the MMR. Their first project was launched in 1996, in Mumbai’s Dahisar area.
