Keystone Realtors Limited IPO

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i. Keystone Realtors is one of the prominent real estate developers (in terms of absorption in a number of units) in the micro markets that they are present in. They command 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 terms of absorption (in units) from 2017 to 2021.
ii. The company has 32 Completed Projects, 12 Ongoing Projects, and 19 Forthcoming Projects across the Mumbai Metropolitan Region (“MMR”) that includes a comprehensive range of projects under the affordable, mid and mass, aspirational, premium, and super premium categories, all under its Rustomjee brand.

 

iii. Over the years, they have implemented designs based on customer insights and eco-friendly construction technologies to deliver modern lifestyle solutions and a diverse range of projects. Some of their notable projects include Rustomjee Elements, a large gated community in Upper Juhu, Mumbai; Rustomjee Paramount, a signature complex in Khar, Mumbai;
Rustomjee Seasons, a 3.82 acres gated community in Bandra Annexe, Mumbai; Rustomjee Crown, a 5.75 acres land parcel for high-end development at Prabhadevi, South Mumbai, consisting of three high-rise towers.
iv. Competitive Strengths
a. Well-established customer-centric brand in the Mumbai Metropolitan Region.
b. Amongst the leading residential real estate development companies in MMR with a well-diversified portfolio and strong pipeline.
c. Asset-light and scalable model resulting in profitability and stable financial performance

Objects of the Keystone Realtors Limited IPO:

Each of the Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale. The company propose to utilise the Net Proceeds towards funding the following objects: 1. Repayment/ prepayment, in full or part, of certain borrowings availed by the Company and/or certain of the Subsidiaries. 2. Funding acquisition of future real estate projects and general corporate purposes.
RHP of Keystone Realtors Limited IPO

Keystone Realtors Limited IPO Details:

Open Date: Nov 14 2022
Close Date: Nov 16 2022
Total Shares: 11,737,523
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 635 Cr.
Lot Size: 27 Shares
Issue Price: ₹ 514-541 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 24 2022

Promoters And Management:

Boman Rustom Irani is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in engineering from M.H. Saboo Siddik College of Engineering. He is also the president of the Confederation of Real Estate Developers' Associations of India (CREDAI)-MCHI and the President-Elect of the Confederation of Real Estate Developers' Associations of India (CREDAI)- National. He has over 26 years of experience in the real estate industry. He has been a director on the Board since 2005. Percy Sorabji Chowdhry is an Executive Director of the Company. He holds a bachelor’s degree in commerce from the University of Bombay. He has 23 years of experience in the real estate industry. He has been associated with our Company as a Director since 1999. Chandresh Dinesh Mehta is the Executive Director of the Company. He holds a bachelor's degree in technology in electrical engineering from Banaras Hindu University, Varanasi and a post-graduate diploma in management from Xavier Institute of Management, Bhubaneswar. He has over 26 years of experience in the real estate industry. He has been associated with the Company as a Director since 2004.

Financials of Keystone Realtors Limited IPO:

Particulars (in crores) Mar-22 Mar 21 Mar-20 Mar-19
Revenue from operations 1269 848 1211 2116
Gain on loss of control of Subsidiary 0 281 - -
Construction Cost 1056 496 787 1104
Changes in inventories -67 116 113 448
Employee Benifit Expense 28 27 41 41
Other Expense 72 68 132 205
Operating Profit 180 141 138 318
OPM% 14.18% 16.63% 11.40% 15.03%
Finance Cost 22 139 127 142
Depreciation 3.4 1 2 2
Impairment loss on financial assets 0.2 26 0.1 14
Other Income 33 47 57 25
Profit (Loss) before tax 186 301 63 182
Tax Expense 48 57 48 45
Profit (Loss) for the period 135 231 14 137

Comparison With Peers:

Name of the company Revenue (cr) Profit (cr) EPS P/E CMP MCap(in cr)
Keystone Realtors Limited 1269 135 12.2 44 541 5970
Macrotech Developers Limited 9,233 1,209 24.97 35.8 956 46,029
Godrej Properties Limited 1,825 351 12.68 90.8 1,293 35,943
Oberoi Realty Limited 2,694 1,047 28.8 22.7 886 32,230
Sunteck Realty Limited 513 25 1.71 167 388 5,684
*MCap of Peers are taken on 12.11.2022 (Source:Screener.in) *EPS is taken according to the shares present on 31.03.2022    

Lead Manager of Keystone Realtors Limited IPO:

  1. Axis Capital Limited
  2. Credit Suisse Securities (India) Private Limited

Registrar of Keystone Realtors Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Keystone Realtors Limited 702, Natraj, MV Road Junction, Western Express Highway, Andheri (East), Mumbai, Maharashtra, 400069 Phone: +91 (22) 6676 6888 Email: cs@rustomjee.com Website: https://www.rustomjee.com/

Discussion on Keystone Realtors Limited IPO:

1 Comment

    Though not good for Listing Gain (+5 GMP), still applied for 2 Lots with sure shot allotment.

    Reply

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