Keystone Realtors IPO

Keystone Realtors Limited is one of the leading real estate developers in the micromarkets where they operate According to the number of units they incorporate (Source: Anarock Report). Keystone Realtors IPO will hit the stock market in 14 November 2022.

About Keystone Realtors

As a developer, their primary goal is to create “thoughtful environments” that reinvent living and repurpose life. They define luxury as connection, family, and the richness of life rather than opulence, distance, individualism, or heroics.

With this conviction, they seek to create a more joyful and interconnected society, one that includes places where people may interact and learn the value of close communities and relationships.

In terms of absorption (in units) from 2017 to 2021, they own 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, & 5 percent in Bhandup. They have 32 completed projects, 12 ongoing projects, & 19 upcoming projects in the MMR.

Track Record

Under their Rustomjee brand, Their initiatives span a wide range of categories, including budget, mid- and mass-market, aspirational, premium, and super-premium.

They have created high-quality and reasonably priced residential structures, exclusive gated estates, townships, business parks, retail spaces, schools, famous landmarks, and numerous other real estate projects totaling 20.05 million square feet.

They have worked to develop a brand that is centred on client pleasure since their founding in 1995. They do this by creating communities and fostering spaces that give their customers a greater lifestyle.

Due to their track record of producing numerous high-end award-winning structures, gated communities, and townships, they hope that our clients will view the “Rustomjee” brand as a reliable supplier of quality offers and services.

Business Model

In order to reduce the initial financial expenditure required compared to the direct acquisition of land parcels, Keystone Realtors Limited concentrate on engaging into joint development agreements, redevelopment partnerships with landowners, developers, or society, and slum rehabilitation initiatives.

By minimising the upfront capital cost compared to the direct purchase of land parcels, their business strategy enables them to earn revenue with less initial investments. This guarantees that their capital allocation is balanced and calibrated.

They have been able to institutionalise the development process, which involves managing the relationships with all project stakeholders, thanks to their experience. With the capacity and internal resources to carry out projects from their inception to conclusion, they have established an integrated real estate development approach.

Keystone Realtors IPO

Keystone Realtors Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 850 Crore on 10 June 2022.

The offer includes a fresh issue of INR 700 Crore and there is offer for sale (OFS) of INR 150 by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of INR 140 Crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	3,653.38	3,654.10	4,415.31	4,153.07
Total Revenue	1055.05	1,177.27	1,268.60	2,142.65
Profit After Tax	95.82	231.82	14.49	137.74

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	31.04	31.04	3
Financial Year 2020	2.20	2.20	2
Financial Year 2019	15.25	10.17	1
Weighted Average	18.79	17.95
31 Dec. 2021	9.76	9.76

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, & that these factors will be used to calculate the offer price:

• A well-known, customer-focused brand in the Mumbai Metropolitan Area.
• Among the top residential property developers in MMR, with a broad range of projects in the pipeline.
• Profitability and reliable financial performance are produced by the model’s lack of assets and scalability.
• Demonstrated ability to carry out projects with inside functional knowledge.
• Across the range of project development, strong stakeholder management competencies.
• Operations that are technology-focused are more productive and improve customer experiences.
• A commitment to sustainable development.
• Experienced promoters, senior management with the necessary qualifications, excellent business governance, and a devoted workforce.

Keystone Realtors Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Macrotech Developers Limited	1,089.01
2	5	Godrej Properties Limited	NA
3	10	Oberoi Realty Limited	38.40
4	1	Sunteck Realty Limited	159.36

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on June 8, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Keystone Realtors IPO Details

IPO Opening Date	14 November 2022
IPO Closing Date	16 November 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	514 to 541 per equity share
Market Lot	27
Min Amount	INR 14,607
Listing At	BSE, NSE
Issue Size	635 Crore
Fresh Issue	500 Crore
Offer for Sale	135 Crore

Keystone Realtors IPO Date

Keystone Realtors Limited IPO opening date is 14 November 2022, and the closing date is 16 November 2022. The Keystone Realtors issue may list in 24 November 2022.

IPO Opening Date	14 November 2022
IPO Closing Date	16 November 2022
Basis of Allotment Date	22 November 2022
Initiation of Refunds	22 November 2022
Credit of Shares to Demat Account	23 November 2022
IPO Listing Date	24 November 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Keystone Realtors India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Keystone Realtors IPO.

Keystone Realtors IPO GMP

Keystone Realtors Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Keystone Realtors Limited IPO Review

Keystone Realtors Limited IPO review : Avoid

Keystone Realtors Limited IPO Risk

• Their operations and financial success are heavily reliant on the health of India’s real estate market, notably that of the Mumbai Metropolitan Region.
• Their business could experience a materially negative impact if they are unable to complete their ongoing projects and upcoming projects by the respective projected completion dates or at all.
• The success of these projects depends on their capacity to foresee and fulfil customer desires in the various market segments. They concentrate on developing residential projects across several categories within the MMR.
• In order to acquire property, development rights, or redevelopment rights, which may come with risks, they have entered into joint development agreements, joint venture arrangements, and redevelopment contracts with third party companies.

Other Threats

1. Their company operations and financial performance were negatively impacted by the COVID-19 epidemic, and they might experience a similar impact in the future.
2. Only the development right is transferred to them under their joint development agreements; no interest in the movable property involved.
3. In their Restated Consolidated Financial Information, certain mistakes in their historical audited consolidated financial statements have been recorded as restatement adjustments.
4. Existing legal disputes involving their company, subsidiaries, joint ventures, associates, directors, and promoters could have a negative effect on their business, reputation, financial situation, operating results, and cash flow if they are unsuccessful.
5. Their business, reputation, financial situation and operating results may suffer if they are unable to sell their project goods in a timely manner.

Keystone Realtors Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Keystone Realtors IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Keystone Realtors Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
14 November 2022	1
15 November 2022	2
16 November 2022	3

Keystone Realtors Limited Management

Their Chairman and Managing Director has worked for organizations like Coruscant Tec Private Limited and Web Resource Private Limited, which specializes in web development.

Their board of directors is made up of two Executive Directors (the Chairman and Managing Director, as well as a Whole-Time Director) and four Non-executive Directors (three Independent Directors, including one woman Independent Director), with an average tenure of nearly six years.

Their directors have backgrounds in finance and entrepreneurship, as well as knowledge in the financial services, payments, and technology industries.

Keystone Realtors’s board of directors is advised by three independent directors with backgrounds in electrical engineering, worldwide commercial business management, and human resources. An seasoned executive leads each of their company functions.

Keystone Realtors Limited‘ Promoters

• Boman Rustom Irani
• Percy Sorabji Chowdhry
• Chandresh Dinesh Mehta

Promoter’s Holding

Pre Issue Share Holding	93.82%
Post Issue Share Holding

Keystone Realtors Limited Prospectus