scorecardRustomjee Group firm Keystone Realtors IPO subscribed 0.08 times on day 1
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Rustomjee Group firm Keystone Realtors IPO subscribed 0.08 times on day 1

Rustomjee Group firm Keystone Realtors IPO subscribed 0.08 times on day 1
Stock Market3 min read
  • The IPO saw the portion for retail investors subscribed 0.12 times.
  • Keystone Realtors plans to raise ₹635 crore through the IPO – ₹560 crore of it through a fresh issue of shares and ₹75 crore through an offer for sale by promoters and existing shareholders.
  • The price band of the IPO is set at ₹514-541 a share.
The initial public offering of Keystone Realtors, which operates under the brand ‘Rustomjee’, was subscribed 0.08 times on Monday, the first day of the issue. The IPO will close on November 16.

The IPO saw the portion for retail investors subscribed by 0.12 times. Meanwhile, the portion reserved for qualified institutional investors was subscribed 0 times as only 756 shares were bid against 24.70 lakh on offer.

Keystone Realtors plans to raise ₹635 crore through the IPO – ₹560 crore of it through a fresh issue of shares and ₹75 crore through an offer for sale by promoters and existing shareholders. The price band of the IPO is set at ₹514-541 a share.

The company is in the business of real estate construction, development and other related activities in India. As of June 30, 2022, it had 12 ongoing projects and 21 forthcoming projects across the Mumbai Metropolitan Region (MMR), under affordable, mid and mass, and some premium categories.

IPO proceeds will be utilised towards debt repayment, funding acquisition of future real estate projects, and general corporate purposes.
Category of investors

Subscription status

Qualified institutional buyers

0.00 times

Non institutional investors

0.11 times

Retail

0.12 times

Overall

0.08 times


As of June 30, 2022, it had developed 32 projects, over 280 buildings, 20.22 million square feet area (including infrastructure) and homes for over 14,000 families.

Further, total borrowings of the company increased to ₹1,557 crore in FY22 from ₹1,220 crore in FY21. The company added that the development of real estate projects involved significant expenses, a large part of it funded through financing from banks and other financial institutions.

The company mentioned in its red herring prospectus (RHP) that it may face issues in raising additional loans. “Moreover, certain of our loan documents contain provisions that may limit our ability to incur future debt, make certain payments or take certain actions,” it said.

In FY22, the real estate company’s net profit slumped 41% from a year earlier to ₹136 crore while revenue rose 50% to ₹1,269 crore.
Particulars

Revenue from operations

Net profit

FY22

₹1,269 crore

₹136 crore

FY21

₹848 crore

₹231 crore

FY20

₹1,211 crore

₹14 crore



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Rustomjee Group firm Keystone Realtors: 10 key things to know before subscribing to the IPO

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