Keystone Realtors, a subsidiary of the Rustomjee Group, files IPO papers to garner Rs850 crore

13 Jun 2022 , 11:37 AM

Keystone Realtors, a Rustomjee group company, has filed a draught red herring prospectus with the Securities Exchange Board of India in order to raise Rs850 crore through an initial public offering. The IPO consists of a Rs700 crore new issuance and a Rs150 crore offer for sale by existing shareholders and promoters.

Boman Rustom Irani’s OFS is worth up to Rs75 crore, Percy Soraji Chowdhry’s OFS is worth up to Rs37.50 crore, and Chandresh Dinesh Mehta’s OFS is worth up to Rs37.50 crore.

The Rs427 crore raised from the offering would be utilized to repay the debt owed by the company’s subsidiaries. The remaining funds will be used to fund the acquisition of future real estate projects as well as other corporate reasons. Axis Capital and Credit Suisse are in charge of the issue.

In the fiscal year 2021, the company recorded consolidated sales of Rs848.72 crore, down from Rs1,211.47 crore in the fiscal year 2020. The net profit for the year was Rs231.82 crore, up from Rs14.50 crore the previous year. For the year, the total debt was Rs1564.04 crore.
It is one of the most well-known micro-market real estate developers (in terms of unit absorption). It has developments in Juhu, Bandra East, Khar, Bhandup, Virar, and Thane, and is able to command premium prices in the MMR micro-markets where it operates.

The company had 32 completed projects, 12 ongoing projects, and 19 upcoming projects in the Mumbai Metropolitan Region (MMR) as of March 31, 2022, which included a diverse range of projects in the affordable, mid and mass, aspirational, premium, and super-premium categories, all under the Rustomjee brand. It has built 20.05 million square feet of high-end and low-cost residential structures, luxury gated estates, townships, business parks, retail spaces, schools, iconic landmarks, and other real estate projects.