Keystone Realtors Limited IPO (Rustomjee IPO) Company Profile :
Keystone Realtors Limited is one of the prominent real estate developers in terms of absorption in a number of units in the micro markets that the company is present in. the company commands a market share of 28% in Khar, 23% market in Juhu, 11% in Bandra East, 14% in Virar, 3% in Thane and 5% in Bhandup, in the terms of absorption in units from 2017 to 2021. As of June 30, 2022, the company had 32 Completed Projects, 12 Ongoing Projects, and 21 Forthcoming Projects all across the Mumbai Metropolitan Region (“MMR”) which includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium and super premium categories, all under the brand “Rustomjee”. As of June 30, 2022, the company has developed a total of 20.22 million square feet of high-value and affordable residential buildings, premium gated estates, corporate parks, townships, retail spaces, schools, iconic landmarks, and various other real estate projects.
As part of the company’s business model, it focuses on entering into joint development agreements, redevelopment agreements with landowners or developers or societies, and slum rehabilitation projects, which require lower upfront capital investment as compared to the direct acquisition of land parcels. This business model allows the company to minimize the upfront capital expenditure compared to the direct acquisition of land parcels, which ensures that its capital allocation is balanced and calibrated, allowing it to generate revenue with lower initial investments.
As of June 30, 2022, Keystone Realtors Limited has developed 32 projects, over 280 buildings, 20.22 million square feet of area (including infrastructure), and homes to over 14,000 families.
Keystone Realtors Limited IPO (Rustomjee IPO) Details:
|IPO Open Date||14th November 2022|
|IPO Close Date||16th November 2022|
|Listing Date||24th November 2022|
|Face Value||₹10 per share|
|Price||₹514 to ₹541 per share|
|Lot Size||27 Shares|
|Issue Size||11,737,523 shares
(aggregating up to ₹635.00 Cr)
|Fresh Issue||10,351,201 shares
(aggregating up to ₹560.00 Cr)
|Offer for Sale||1,386,322 shares
(aggregating up to ₹75.00 Cr)
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
|QIB Shares Offered||Not more than 50% of the Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Offer|
|Retail Shares Offered||Not less than 35% of the Offer|
|Company Promoters||Boman Rustom Irani, Percy Sorabji Chowdhry, and Chandresh Dinesh Mehta|
Keystone Realtors Limited IPO (Rustomjee IPO) Financial analysis:
|Particulars||Q1 FY-23(in cr.)||FY-22(in cr.)||FY-21(in cr.)||FY-20(in cr.)||CAGR|
|Revenue from operations||168.56||1269.37||848.72||1211.47||1.6%|
|Gain on loss of control of subsidiary||0.00||0.05||281.04||0.00|
|Impairment loss on Financial assets||0.03||0.25||26.24||0.10|
|Profit/ Loss of associates||-0.43||-2.15||-11.72||0.25|
Key operational information relating to the projects:
|Micro Markets||Key Locations||Developable Area in million square feet|
|Western Suburbs||Andheri, Juhu, Santacruz, Khar, Bandra, Goregaon, Malad, Kandivali, Borivali||8.55||1.72||3.36||13.63||24.40|
|Eastern Suburbs||Sion, Bhandup||0.34||0.33||0||0.67||1.20|
|South Central Mumbai||Matunga, Mahim, Dadar, Prabhadevi, Sewri||0.43||4.48||1.43||6.34||11.35|
|Extended Western Suburbs||Dahisar, Virar||5.69||0.66||4.87||11.22||20.09|
Keystone Realtors Limited IPO (Rustomjee IPO) Offer for Sale Details:
|S. No.||Name of the Selling Shareholder||Number of Equity Shares
being offered in the Offer for Sale (Up to)
|1.||Boman Rustom Irani||693,162 Equity Shares aggregating up to ₹ 375.00 million|
|2.||Percy Sorabji Chowdhry||346,580 Equity Shares aggregating up to ₹ 187.50 million|
|3.||Chandresh Dinesh Mehta||346,580 Equity Shares aggregating up to ₹ 187.50 million|
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Keystone Realtors Limited IPO (Rustomjee IPO) Strengths:
Keystone Realtors Limited presence in the MMR market for two and half decades, together with its construction quality, execution and delivery capabilities, has enabled it to establish the “Rustomjee” brand in the MMR. As of June 30, 2022, the company had 32 Completed Projects, 12 Ongoing Projects, and 21 Forthcoming Projects across the MMR that includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium, and super premium categories, all under the “Rustomjee” brand.
Keystone Realtors Limited is amongst the leading residential real estate development companies in MMR with a well-diversified portfolio and strong pipeline, the company commands a market share of 39% in Khar, 14% in Bandra East, and 14% in Juhu from the overall redevelopment supply between 2017 and 2021.
Keystone Realtors Limited has an asset-light and scalable model resulting in profitability and stable financial performance. As part of its business model, the company focuses on entering into joint development agreements and re-development agreements with landowners or developers, or societies, which requires lower upfront capital expenditure compared to the direct acquisition of land parcels.
Keystone Realtors Limited has adopted an integrated real estate development model, with capabilities and in-house resources to execute projects from their initiation to completion. The company has developed in-house competencies for every stage of the property development life cycle, commencing from business development, which involves the identification of land parcels and the conceptualization of the development, land acquisition, and approvals, to execution, comprising planning, designing, and overseeing the construction activities, marketing and sales culminating in property delivery.
Keystone Realtors Limited leverages its strong brand and reputation, development track record, industry knowledge and know-how of the regulatory environment in the MMR, and expertise in designing amenities, to deliver projects that meet the demands of its customers. In particular, the company strives to maintain the “desirability” of its real estate portfolio across all categories to command premium pricing power.
Keystone Realtors Limited currently has partnerships with strategic investors such as Lipalton Pte. Ltd. (a wholly-owned subsidiary of Keppel Land Limited) for Rustomjee Urbania, an integrated township located in Thane, and as HDFC Capital Affordable Real Estate Fund – 3 (managed by HDFC Capital Advisors Limited as its investment manager). In addition, the company has funding arrangements with leading financial institutions such as with L&T Finance Limited, ICICI Bank Limited, Standard Chartered Bank and Indian Bank. The professional management team from the investors has assisted it in implementing robust corporate governance procedures, capital raising, and strategic business advice, which has been critical to the growth of the company.
Keystone Realtors Limited’s senior management personnel are professionally qualified individuals who have spent considerable time in various functions of real estate development. They have significant experience in the areas of operations, design and development, finance, marketing, engineering, legal, human resource, and business development. For each of the major projects, the company appoints a Project CEO who ensures better operational efficiency across various functions in project management. Their experience gives the company the ability to anticipate the trends and requirements of the real estate market, identify and acquire lands in emerging locations and design properties in accordance with customer trends.
Keystone Realtors Limited IPO (Rustomjee IPO) Risk factors:
Keystone Realtors Limited’s business and profitability are significantly dependent on the performance of the real estate market generally in India and particularly in the Mumbai Metropolitan Region (“MMR”). Varying market conditions in the MMR may affect the ability to ensure the sale of the projects and the pricing of units in such projects, which may adversely affect the company’s results of operations and financial condition.
Keystone Realtors Limited may provide guarantees to lenders for financing provided to its Subsidiaries, Joint Ventures and Group Companies, and any failure to repay such loans by its Subsidiaries, Joint Ventures, and Group Companies, may require the company to repay the loans availed, which may affect the business, results of operations and financial condition. As of June 30, 2022, the company provided ₹ 292.40 crores of guarantees for repayment of their outstanding principal amount of indebtedness to third parties.
Keystone Realtors Limited’s business is capital intensive and requires significant expenditure for real estate project development and is therefore dependent on the availability of real estate financing, which may not be available on terms acceptable to the company in a timely manner or at all.
The real estate industry in India has witnessed significant downturns in the past, and any significant downturn in the future could adversely affect the business, financial condition, and results of operations of the company.
Any negative operating cash flows in the future would adversely affect the cash flow requirements, which may adversely affect the company’s ability to operate the business and implement the growth plans, thereby affecting the financial condition of the company.
Keystone Realtors Limited IPO (Rustomjee IPO) Objects of the Offer:
Keystone Realtors Limited proposes to utilise the Net Proceeds towards funding the following objects:
- Repayment/ prepayment, in full or part, of certain borrowings availed by our Company and/or certain of our Subsidiaries; and
- Funding acquisition of future real estate projects and general corporate purposes.
Keystone Realtors Limited IPO Prospectus:
Registrar to the offer:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai 400 083, Maharashtra, India
Telephone: +91 22 4918 6200 / +91 810 811 4949
Investor grievance E-mail: email@example.com
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Keystone Realtors Limited IPO (Rustomjee IPO) FAQ
Ans.Keystone Realtors Limited IPO (Rustomjee IPO) will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The Keystone Realtors IPO opens on Nov 14, 2022 and closes on Nov 16, 2022.
Ans. The minimum lot size that investors can subscribe to is 27 shares.
Ans. The Keystone Realtors IPO listing date is not yet announced. The tentative date of Keystone Realtors IPO listing is Nov 24, 2022.
Ans. The minimum lot size for this upcoming IPO is 27 shares.